BackGold prices today edge higher but down ₹7,000 from record highs, silver gains
Gold rates today were moderately higher but have fallen sharply this weekGold ETFs have also seen weaker inflows, say analysts
PremiumGold and silver were higher in Indian markets though the gains were moderate. On MCX, gold futures rose 0.4% to ₹48716 per 10 gram while silver advanced 0.34% to ₹60,045 per kg. In the previous session, gold had slipped marginally while silver had edged 0.25% higher. A rally in equities after upbeat covid vaccine trial results from Pfizer, Moderna and AstraZeneca has weighed on gold prices.
Gold prices in India are down ₹1,600 per 10 gram so far this week. Earlier, in August, gold prices had hit a record high of ₹56,200 and after the yellow metal has corrected sharply.
In global markets, gold rates were slightly higher amid a pause in rally in traditional risk assets. Gold added 0.1% to $1,809.74 an ounce. The yellow metal was also supported by disappointing US jobs data and a resurgence of Covid-19 cases worldwide. Among other precious metals, silver rose 0.2% to $23.35 per ounce while platinum gained 0.2% to $965.52.
An MSCI gauge of global shares has stalled after gaining 13% in November -- still set for the best month since 1988 -- on progress toward a coronavirus vaccine.
US Labour Department data released on Wednesday showed the number of Americans filing first-time claims for jobless benefits increased to a seasonally adjusted 778,000 last week amid surging coronavirus cases and business restrictions.
"The biggest factor weighing on gold price is ETF outflows which show that investors are exiting. Gold has witnessed sharp sell-off as reduced safe haven buying has been coupled with weakening investor interest and a break below the key support level of $1850/ounce. While the sell-off has dented market sentiment, there could be possibility of some stability as price is near the key $1800/ounce level," Kotak Securities said in a note.
The world's largest gold-backed exchange-traded fund, or gold ETFs, continued to see outflows. The holdings of the SPDR Gold Trust fell 0.4% to 1,194.78 tonnes on Wednesday from 1,199.74 tonnes on Tuesday.
The sharp sell-off in gold on back of reduced safe haven buying has pressurized silver as well, says Kotak Securities. "ETF outflows also show weaker investor interest in silver. However, improving outlook for global economy amid vaccine progress has also improved prospect for silver’s industrial demand and this has limited the downside. Silver may remain under pressure until we see a substantial recovery in gold price or some pick up in investor buying," the brokerage said. (With Agency Inputs)
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