Gold, silver prices rise today on bleak economic outlook projection by US Federal Reserve

By: |
June 11, 2020 12:10 PM

On MCX, gold August futures were trading with a gain of Rs 537 or 1.15 per cent at Rs 47,163 per 10 grams. While silver July futures were ruling at Rs 48,809 per kg, up Rs 724 or 1.51 per cent.

gold prices, mcx, silver ratesGlobally, spot gold was down 0.2 per cent at $1,732.56 per ounce

Gold prices rose today after the Federal Reserve projected a grim outlook for the US economy, which spurred the safe-haven demand among the investors. On MCX, gold August futures were trading with a gain of Rs 537 or 1.15 per cent at Rs 47,163 per 10 grams. While silver July futures were ruling at Rs 48,809 per kg, up Rs 724 or 1.51 per cent. Meanwhile, the total number of coronavirus cases in India has reached 2,86,579 and fatalities have surpassed 8,000-mark. US Fed chair Jerome Powell also said that the virus poses a great threat. “The safe-haven investment demand has been rising steadily. The USDINR pair has also appreciated hence overall sentiment is positive for yellow metal for intraday trade today,” said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers.

Globally, spot gold was down 0.2 per cent at $1,732.56 per ounce. US gold futures climbed 1.2 per cent to $1,741.90. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.4 per cent to 1,129.50 tonnes. Palladium fell 0.9 per cent to $1,929.96 per ounce and silver declined 1.7 per cent to $17.95, while platinum rose 0.5 per cent to $836.38, according to Reuters. Fed projected that the US economy will shrink 6.5% in 2020, and “this projection has supported the safe-haven demand for gold,” said Anuj Gupta, Deputy VP- Commodities & Currencies Research, Angel Broking Ltd. “We recommend to buy gold. For intraday perspective, traders can buy gold at 47000 levels, with the stop loss of 46750, for the target of 47600 levels,” Gupta added. 

Meanwhile, the restarting of global economic activities with lockdown easing in many countries is likely to limit major gains in gold, says Hareesh V, Head Commodity Research at Geojit Financial Services. On the domestic equity front, Sensex and Nifty were trading nearly one per cent lower. BSE Sensex was trading at 33,916, down 330 points or 0.97 per cent while the broader Nifty 50 index was ruling 86 points or 0.85 per cent lower at 10,030.

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
1Cotton prices may remain under pressure on huge carryover stocks
2Deregulation? Govt imposes stock limits on onion
3Govt’s another move to rein in soaring onion prices; stock limit imposed on wholesellers, retailers