Gold prices today climb again, silver rates surge1 min read . Updated: 20 May 2020, 09:30 AM IST
- Gold prices in India include 12.5% import duty and 3% GST
- Some experts suggest buy-on-dips strategy for gold
Gold prices in India moved higher today amid firmness in global rates. On MCX, June gold futures were up 0.6% to ₹47,331 per 10 gram, extending the previous session's ₹435 gain. Gold prices in India have moved higher in five out of six sessions, in tandem with a global rally in the precious metal. Silver futures on MCX also edged higher, rising 1.17% to ₹49,390 per kg. Earlier this week, gold had hit a record high of ₹47,980 per 10 gram. Rupee's depreciation also helped support domestic gold prices. Gold prices in India include 12.5% import duty and 3% GST.
In global markets, gold prices moved higher today as the risk-on rally over optimism about a potential vaccine for the coronavirus fizzled out. Uncertainty over global economy and US-China tensions were back to the fore supporting the safe-haven demand of gold. Gold rose slightly to $1,750.19 per ounce.
Supporting gold price is expectations of additional measures by central banks and governments to support their economies. Kotak Securities said in a note.
"US Fed Chairman warned about slow recovery in US economy but reiterated that the central bank is willing to take more measures to support the economy. Slower economic recovery also makes a case for additional measures," the brokerage added, suggesting a buy-on-dips strategy.
Among other precious metals, platinum jumped 2% to $834.65 and silver rose 1.4% to $17.41.
Fears of a further deterioration in China-US relations supported gold prices, with some reports saying that Nasdaq may unveil restrictions that will make it more difficult for some Chinese companies to list there.
Asian stocks struggled today after a report, citing experts, said that data from a small, early-stage safety trial testing Moderna Inc's experimental COVID-19 vaccine does not provide the critical data needed to assess its effectiveness.
Moderna said on Monday the vaccine candidate, the first to be tested in the United States, produced protective antibodies in a small group of healthy volunteers, driving risk assets higher and putting pressure on gold. (With Agency Inputs)