Gold prices rose on Friday taking cues from the trends in the international market as fresh tensions between the US and China and fast-rising coronavirus cases boosted the yellow metal’s appeal. On MCX, gold June futures were trading at Rs 46,842 per 10 grams, up Rs 188 or 0.40 per cent. While silver July futures were ruling Rs 1,015 or 2.30 per cent higher at Rs 45,150 per kg. “Increase in the jobless claim in the US and the expectation of negative interest rates by Federal Reserve Chairman Jerome Powell supported the gold prices,” Anuj Gupta (DVP–Commodities & Currencies Research, Angel Broking), said. Gold prices hit day’s high of Rs 46,948 per 10 grams.
Globally, spot gold gained 0.1 per cent to $1,730.56 per ounce. US gold futures climbed 0.1 per cent to $1,742.30. SPDR Gold Trust holdings, the world’s largest gold-backed exchange-traded fund, rose 1.15 per cent to 1,104.72 tonnes on Thursday. Palladium gained 0.3 per cent to $1,840.42 an ounce. Among other precious metals. Platinum eased 0.1 per cent to $767.29, while silver rose 0.7 per cent to $15.97. “US President Donal Trump hinted a further deterioration of his relationship with China over the virus, saying he has no interest in speaking to President Xi Jinping right now and going so far as to suggest he could even cut ties with Beijing,” according to Reuters.
The second tranche of sovereign gold bond scheme 2020-21 will close for subscription today. The issue price has been fixed at Rs 4,590 per gram. Those applying online and making payment through digital mode will further get a discount of Rs 50 per gram.
Positive outlook for gold-
The outlook for the yellow metal is positive for the next week. “FOMC meeting minutes, existing home sales and building permits data will be critical to monitor. Trade conflicts have resurfaced and pressure on Fed is building to bring rates below zero,” Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers, said. “On the other side, Donald Trump has spoken for a strong dollar. The investment demand has increased to the highest level since June 2012 on the back of recessionary pressures and trade war,” he added saying that the undertone is positive. “We recommend to go long on dips,” Trivedi added.