Gold prices jump on worries over rising Covid-19 cases

NEW DELHI: Gold and silver prices rose in early trade on Monday, following a steep fall in the previous session, tracking the trend in the global market and on rising worries over fast spreading COVID-19 outbreaks.

India has reported over 22 lakh COVID-19 cases by now with more than 44,400 deaths. Gold tends to gain when interest rates are low and political and economic uncertainties are high.

Gold futures on MCX NSE 1.35 % were up 0.42 per cent or Rs 231 at Rs 55,020 per 10 grams  .

hovering a tad below record highs. Silver futures added 1.16 per cent or Rs 863 to Rs 75,023 per kg.

Gold price surged for the 16th straight session on Friday and touched an all-time high of Rs 57,008 per 10 grams in the national capital, according to HDFC Securities. Silver too continued its upward movement, with the price touching a record-high of Rs 77,840 per kilogram.

Gold prices steadied in international markets today after a steep fall in the previous session, as concerns over a worsening COVID-19 pandemic and intensifying US-China tensions underpinned the metal’s safe-haven appeal. Reuters reported.

gold was steady at $2,033.40 per ounce by 0045 GMT. Gold fell more than 1.5 per cent on Friday after hitting a record high of $2,072.50, as the US dollar regained some ground. US gold futures rose 0.7 per cent to $2,042.90.

Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to Aug. 4, the US Commodity Futures Trading Commission (CFTC) said on Friday.

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.

Physical gold remained out of favour in most Asian hubs last week as a worsening pandemic kept retail buyers away with global benchmark spot prices at historic highs.

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.


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