Gold prices jump on rising COVID-19 cases, US-China tensions; silver rates hold Rs 75,000 per kg

By: |
August 10, 2020 10:48 AM

Gold October futures were trading Rs 156 or 0.28 per cent higher at Rs 54,945 per 10 grams while silver September futures advanced Rs 847 or 1.14 per cent to hold Rs 75,000-mark

gold, silverOn a year-to-date (YTD) basis, gold prices have gained over 40 per cent while silver rates are up more than 60 per cent

Gold prices gained on Monday taking cues from the trend in the international market and rising worries over COVID-19 cases. So far, over 22 lakh coronavirus cases and more than 44,000 deaths have been reported in India. Gold October futures were trading Rs 156 or 0.28 per cent higher at Rs 54,945 per 10 grams while silver September futures advanced Rs 847 or 1.14 per cent to hold Rs 75,000-mark. “Rising pandemic cases and escalating US-China tensions continue to lift the safe-haven demand of gold and thus prices of the commodity. However, with the dollar gaining strength after the key US employment numbers and near-record high prices are likely to calm down major buying sentiments,” said Hareesh V, Head Commodity Research at Geojit Financial Services.

On a year-to-date (YTD) basis, gold prices have gained over 40 per cent while silver rates are up more than 60 per cent. Analysts say geopolitical tension of banning business of Tik Tok in the US and executive order sanctioning Hong Kong leaders could have triggered a rush to the safety of US Dollars. “After failing to extend late Friday pullback, gold prices are trading in the vicinity of $2025-$2035. Although COVID concerns will keep gold demand intact but recent surge in US Dollar could be cited as the reason for recent fall. Besides, gold and silver were in an overdue correction which we are witnessing,” Bhavik Patel, Senior Technical Research Analyst at Tradebulls Securities, told Financial Express Online. He also added that the reason for strength in the US dollar was signing an executive order by the US President by allowing $400 unemployment benefits.

In the international market, gold prices were steady, following a sharp decline in the previous session. Spot gold was steady at $2,033.40 per ounce. US gold futures rose 0.7 per cent to $2,042.90. Among other precious metals, silver eased 0.1 per cent to $28.28 per ounce, while platinum gained 0.9 per cent to $970.12 and palladium climbed 0.5 per cent to $2,188.13. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.46 per cent to 1,262.12 tonnes on Friday. “As long as the support of $1980 remains undisturbed, expect rallies to continue with immediate resistance seen at $2080 followed by $2280 levels later. A direct drop below $1880 could negate the outlook and take prices lower,” Hareesh V added.

Meanwhile, on the domestic equity front, BSE Sensex was up 291 points or 0.76 per cent to trade at 38,331, while the broader Nifty 50 index was ruling above the crucial 11,300-mark.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1MMTC-PAMP launches buy-back, exchange offers for gold
2Cotton purchase exceeds record 10 million bales
3FIEO urges commerce ministry to exclude ‘Bangalore rose’ onion from export ban list