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Home / Markets / Commodities /  Gold prices today edge higher after falling 2,500 last month, silver rates up

Gold and silver prices today edged higher in Indian markets, tracking an upward trend in global rates. On MCX, February gold futures rose 0.3% to 48,070 per 10 gram while silver futures advanced 1.2% to 60,977 per kg. In the previous session, gold futures had slipped 0.4% while silver had edged 0.2% lower. Gold prices have been on a downward path since hitting record highs of 56,200 in August. In November alone, gold prices fell about 2,500 per 10 gram.

Progress on vaccine front has improved the prospects of future global growth while political chaos in US has also eased with formal start of transition of Biden Administration to power. In addition, gold ETFs have also suffered outflows as global risk sentiment improved. But analysts say that other factors that favor gold - ultra-dovish monetary policy and the risk of steeper inflation - remain in place.

Gold's slide came despite a subdued dollar, which hit its lowest level in over two years.

"While improving future outlook has led to a shift from safe havens to riskier assets, near term challenges persist with worsening virus situation and uneven economic recovery," Kotak Securities said in a note.

In international markets, gold rates edged higher today supported by a weak dollar. Spot gold rose 0.1% to $1,778.76 per ounce. The dollar index was down 0.05%, making gold cheaper was for holders of other currencies.

Among other precious metals, silver gained 0.2% to $22.64 per ounce, while platinum rose 0.4% to $968.78 and palladium was down 0.1% at $2,370.63.

However, gold's gains were capped as investors once again embraced risk assets after an unprecedented month of gains. Asian stocks and US futures traded higher today, shrugging off an overnight slide in equities.

A top US government official on Monday said some Americans could begin receiving coronavirus vaccinations before Christmas. Meanwhile, Moderna Inc has sought US emergency authorization for its COVID-19 vaccine after a late-stage study showed it was 94.1% effective, with no serious safety concerns.

US President-elect Joe Biden on Monday said he will nominate former Federal Reserve chair Janet Yellen to lead the Treasury. She will be tasked with helping the US economy recover from the sharp downturn in growth and mass layoffs caused by the Covid-19 pandemic. (With Agency Inputs)

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