Gold, silver rates slip in trade on Rs 20 lakh crore stimulus package announcement amid coronavirus

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Published: May 13, 2020 12:11:06 PM

Gold and silver prices edged lower in Wednesday's trade after PM Narendra Modi announced a massive Rs 20 lakh crore economic package to revive the Indian economy

gold, silver, gold ratesSpot gold climbed 0.1 per cent to $1,704.23 an ounce. US gold futures gained 0.1 per cent to $1,708.10. Image: Reuters

Gold and silver prices edged lower in Wednesday’s trade after PM Narendra Modi announced a massive Rs 20 lakh crore economic package to revive the Indian economy. Meanwhile, worries of a second wave of coronavirus infections in other countries added to the worries of the investors. With yesterday’s announcement and some previous other packages rolled out by the government, India has provided relief of about Rs 20 lakh crore which is equivalent to nearly 10% of India’s GDP. Around 11.45 AM, the gold June futures turned positive and were up Rs 75 or 0.16 per cent at Rs 45,700 per 10 grams. Similarly, silver July futures gained Rs 69 or Rs 0.16 per cent to trade at Rs 43,123 per kg on MCX. “On the expectations of more stimulus from the US Federal Reserve to support the economy battered by coronavirus-induced restrictions, and an easing dollar lent further support to the gold prices. Having said that, we believe the undertone is still positive so its buy on dips market,” Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers, said.

Globally, yellow metal gained as concerns that the second wave of coronavirus infections may be emerging in many countries weighed on riskier assets. Spot gold climbed 0.1 per cent to $1,704.23 an ounce. US gold futures gained 0.1 per cent to $1,708.10. SPDR Gold Trust holdings, the world’s largest gold-backed exchange-traded fund, rose 0.24 per cent to 1,083.66 tonnes on Tuesday. Palladium slipped 0.6 per cent to $1,848.93 per ounce. Among other precious metals, silver gained 0.6 per cent to $15.49 and platinum rose 0.8 per cent to $759.43.

On the domestic equity front, headline indices were firm in the noon deals. BSE Sensex was trading at 32,171.35, up 800.23 points or 2.55 per cent. While, the broader Nifty 50 index was ruling at 9,425.45, up 229 points or 2.49 per cent. 

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