Gold prices in India remained steady today, with the precious metal struggling for gains for third day in a row. On MCX, August gold prices were flat at ₹47,350 per 10 gram. Silver rates however edged lower. On MCX, silver futures fell 0.15% to ₹47,790 per kg, following a ₹600 slide in the previous session. In global markets, gold prices remained steady with spot rates flat at at $1,723.19 per ounce. Fears of a second wave of coronavirus infections and renewed US-China tensions boosted the safe-haven appeal of gold.
But it was offset by a stronger US dollar and optimism of a swift economic recovery that capped upside.
Among other precious metals, silver fell 0.7% to $17.38, while platinum gained 0.1% to $805.34.
"Fears of a second wave of coronavirus pandemic and escalating global geopolitical tensions continue to support gold’s haven demand. Meanwhile, hopes of a quick economic recovery and a steady dollar are likely to limit major upsides," said Hareesh V, Head Commodity Research at Geojit Financial Services
Buying momentum is likely to continue as long as prices (London spot) stay above $1710, he said, adding that strong resistances are seen at $1740 followed by $1780 levels. The immediate downside reversal point is $1645.
Investors continue to weigh a resurgence in some virus hotspots across the world that may derail an economic recovery against record stimulus measures to help stave off the worst of the pandemic’s impact. A surge in new infections in several US states and the imposition of travel curbs in Beijing to stop a new outbreak there have served as a reminder of the risks of reopening economic activity.
But US-China tensions continue to simmer. US President Donald Trump on Thursday renewed his threat to cut ties with China, a day after his top diplomats held talks with Beijing.
Gold is often used as a safe store of value during times of political and financial uncertainty.
Denting gold's appeal, the dollar index rose 0.1% and hovered near a two-week high hit in the previous session. A firm US dollar makes gold more expensive for holders of other currencies.
Leading US government expert Anthony Fauci has said he is optimistic the world would soon have a coronavirus vaccine that would end the pandemic, calling early trial results "encouraging." (With Agency Inputs)