Gold prices struggled for gains for the second day in a row amid muted global rates. On MCX, August gold futures were up 0.06% to ₹48,275 per 10 gram while silver futures were up 0.3% to ₹49,133 per 10 gram. In the previous session, gold had declined 0.1% per 10 gram while silver had fallen 0.5% per kg. Last week gold had hit a record high of ₹48,589 per 10 gram.
“Weakening global outlook has dented demand expectations putting additional pressure on prices. Gold may continue to witness choppy trade with key focus on the key $1800/oz level however the general bias may be on the upside unless we see a significant improvement in risk sentiment,” Kotak Securities said in a note.
In global markets, gold prices were flat today but were on course for their biggest quarterly gain in over four years as a surge in coronavirus cases has boosted demand for the safe haven asset. Spot gold was mostly unchanged at $1,770.77 per ounce. Last week, prices had hit a near eight-year high of $1,779.06, hit last week.
This quarter gold is up more than 12% in global markets. Gold is largely considered as a safe investment during times of political and financial uncertainty.
Among other precious metals, platinum today rose 0.1% to $806.22 and silver lost 0.3% at $17.81.
Global equity markets were higher today, helped by news of a record 44-percent on-month jump in US pending home sales in June, as well as a massive improvement in manufacturing activity as reported by the Dallas Federal Reserve.
China also said its purchasing managers index (PMI) of factory activity improved on May and beat forecasts, while the non-manufacturing reading was also better than hoped.
US Federal Reserve Chair Jerome Powell said on Monday the outlook for the world‘s biggest economy is “extraordinarily uncertain” and will depend both on containing the coronavirus and on government efforts to support the recovery.
(With Agency Inputs)