Gold prices in India broke a three-day losing streak when they edged up today. On MCX, October gold futures rose 0.25% to ₹50,805 for 10 grams as silver futures jumped 1.3% to ₹68120 per kg. In the previous session, gold prices fell 0.1% while silver rates edged up 0.8%. In India, gold had reached a record high of ₹56,200 per 10 grams on August 7. From these highs gold is now falling ₹5000 per 10 grams. On the other hand, money has also plunged ₹10,000 per kg compared to the highs of the previous month.
Meanwhile, retail demand for physical gold in India edged up last week due to lower domestic prices.
In global markets, gold prices have now risen slightly, but gains have been capped by a stronger US dollar. Spot gold rose 0.2% to $ 1,935.53 an ounce. A stronger greenback makes gold expensive for holders of other currencies. Among other precious metals, silver was down 0.2% to $ 26.84 an ounce while platinum was up 0.6% to $ 900.01.
Supporting the price of gold is an increase in cases of the virus and an increase in tensions between the United States and China, analysts say. “Cases of the virus around the world continue to increase and threaten to impact economic recovery,” Kotak Securities says.
Gold may remain volatile as US equity markets show some vulnerability to the correction as the US dollar index tries to pull back, the broker said.
But Kotak expects gold buying to emerge at a lower level due to the Fed’s dovish stance. He says mixed US economic data could limit the rise of the US dollar.
Among other metals, copper prices have increased in world markets in the hope of a sustained economic recovery in the main Chinese consumer. Three-month copper on the London Metal Exchange rose 1.1% to $ 6,785.50 a tonne. (With contributions from the agency)