Gold and silver prices edged lower in India despite higher global rates. On MCX, gold futures fell 015% to ₹51637 per 10 gram while silver futures declined 0.13% to ₹67790 per kg. In the previous session, gold had risen 0.52% while silver had edged 0.2% lower. For the week, gold had gained marginally. Gold prices in India have remained choppy in recent weeks after hitting a record high of over ₹56,000 last month.
In global markets, gold prices edged higher, helped by a weaker US dollar and resurgence in COVID-19 infections across the world. Spot gold rose 0.3% to $1,954.65 per ounce.
Gold traders are looking ahead to more clues on Fed’s monetary policy as Chairman Jerome Powell will appear before Congressional committees later this week. The dollar index was down 0.12% against its rivals, making gold more attractive for buyers holding other currencies.
Among other precious metals, silver gained 0.6% to $26.92 per ounce while platinum was up 1.3% to $939.75.
The investment demand for gold has picked up after remaining muted in recent weeks. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, rose 1.03% to 1,259.84 tonnes on Friday.
Gold is also supported by safe haven buying amid increasing virus risks, lack of progress over US stimulus plan and Brexit uncertainty, say analysts.
A surge in coronavirus cases in many parts of the world has forced authorities to gradually introduce new restrictions to curb surging infections.
Back in India, jewellers hope that the upcoming festive season could give some push to demand for gold which has remained muted amid the covid crisis. Dealers offered discounts for a fifth straight week amid weak physical demand.
“Gold may remain choppy amid lack of clear cues and mixed trade in equities and US dollar,” says Kotak Securities. It recommends a buy-on-dips strategy for gold, citing global uncertainty and loose monetary policy stance of major central banks.