Gold prices in Indian edged lower today, declining for the third day. But the losses have been moderate as concerns over rising coronavirus cases have supported global rates. On MCX, gold dipped 0.02% to ₹47,930 per 10 gram. In the previous session, gold had dipped 0.3%. Silver rates also declined marginally today today with futures on MCX down 0.1% to ₹48,075 per kg. Gold prices in India had hit a record high of ₹48,589 per 10 gram earlier this week.
In global markets, gold rates edged higher today as a spike in coronavirus cases across the world in recent days has dented hopes of a quick economic recovery. This has promoted investors to opt for safe-haven assets like bonds and gold. Spot gold was up 0.1% at $1,763.48 per ounce. So far this week, gold is up over 1%, with prices jumping near a near eight-year high of $1,779.06 per ounce earlier this week.
Among other precious metals platinum eased 0.1% to $802.42 and silver fell 0.8% at $17.74.
Expectations of further stimulus from Bank of Japan were boosted after governor Haruhiko Kuroda said second-round effects of the coronavirus pandemic could hurt the Japanese economy "considerably". Unprecedented stimulus announced by central banks and governments across the world to fight the pandemic has helped support non-yielding gold, which is up about 15% so far this year in global markets.
"Concerns over rising coronavirus cases dented hopes of a swift economic recovery, driving investors towards the safe-haven metal. Sentiments may stay positive in the yellow metal bur we dont deny possibilities of technical correction," said Jigar Trivedi, commodities analyst at Anand Rathi Shares & Stock Brokers.
Meanwhile, the US has reported a record number of new coronavirus cases in a single day, stoking concerns about the economic recovery. New coronavirus cases jumped to over 37,000 new cases on Thursday, prompting Texas to pause its re-opening.
There has been a rise in infections in other countries including in India, Brazil, Latin America.
Worries over economies re-opening amid a surge in global coronavirus cases has hurt risk sentiment, leading to a tug of war of between bulls and bears in equity markets. (With Agency Inputs)