Home >Markets >Commodities >Gold price today rise but still down 7000 from record highs, silver soars

Gold prices started this month on a positive note after a 2% fall in the previous month. On MCX, gold futures rose 0.5% to 49,566 per gram. However, silver futures on MCX surged 6% to about 74,000 per kg, tracking the recent surge in global rates following a GameStop-style squeeze. Posts began circulating on Reddit urging retail investors to buy silver mining stocks and ETFs backed by physical silver bars.

On a monthly basis, gold rates had fallen about 2% or 1,000 amid wild swings in January.

In global markets, spot gold rose 0.3% to $1,852.35 per ounce while silver rates surged as much as 7.4% to climb a nearly six-month peak. Spot silver hit its highest since August 11 at $28.98 an ounce.

The Indian government's Sovereign Gold Bond Scheme 2020-21 - Series XI opened for subscription today. The issue closes on February 5. The issue price for latest sovereign gold bond tranche has been fixed at 4,912 per gram of gold, with a discount of 50 per gram to those investors applying online and the payment against the application is made through digital mode.

In a note, analysts at Geojit said that gold may give steady but subdued performance in 2021. "The steady investment demand for gold as a strategic asset amid lingering uncertainties, and recovery of consumer demand are expected to support its prices this year. In addition, the performance of yellow metal may be boosted further by the ultra-low interest rate that would remove the opportunity cost of investing in gold. Any further deterioration in economic conditions could slower the recovery of consumer demand in gold. But, it would attract investment demand for safe haven gold, offsetting low consumption," the analysts said in a note.

Finance Minister Nirmala Sitharaman will today announce the Union Budget for 2021-22. Gold traders will be watching out for any announcement on import duty. Gold prices in India include 12.5% import duty and 3% GST.

Gold traders will also be watching for any progress on the US stimulus front. Ten Republican senators have proposed an alternative plan for Covid-19 stimulus costing about $600 billion.

On the virus front, infections continued to show a slowing trend across some regions of the world, including in the U.S., though concerns remain about new variants. (With Agency Inputs)

(With Agency Inputs)

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