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Business News/ Markets / Commodities/  Gold prices today hit record high, silver rates surge

Gold prices today hit record high, silver rates surge

Investment demand for gold has seen a big jump amid the coronavirus scare
  • Silver prices have jumped sharply in recent days
  • Gold rates today: On MCX, gold futures rose to a new high of  ₹41,619 per 10 gramPremium
    Gold rates today: On MCX, gold futures rose to a new high of 41,619 per 10 gram

    Gold prices today jumped to new highs today in Indian markets for the second consecutive day. On MCX, April gold futures jumped 0.4% to 41,619 per 10 gram. In the previous session, gold had jumped about 650 per 10 gram or 1.6%, tracking a surge in the yellow metal's prices in global markets. Silver futures of MCX today rose 0.7% to 47,595 per kg.

    In global markets, spot gold prices were steady at near 7-year high of $1,601.77 per ounce after seeing a big surge in the previous session. Worries about the fallout of the coronavirus on global growth supported the yellow metal on the downside even though there was a drop in new virus cases. Indian as well as other Asian equities were cautiously higher today.

    China on Tuesday reported 1,749 new confirmed cases of coronavirus infections, the lowest since January 29 even though the death toll in the country topped more than 2,000.

    “Gold prices moved above US$1,600/oz (seven-year high) amid concerns over the economic impact of Chinese epidemic. However, we sense that markets will eventually start pricing in the fact that worst of coronavirus crisis seems to be over, with new infection rates and deaths peaking. On price outlook, we opine that gold will retreat lower from the current highs once the adverse effects of coronavirus fades and global economy stabilizes," said Hitesh Jain of Yes Securities.

    Gold investors will watch out for the minutes of the Federal Reserve's January 28-29 policy meeting, which is due later today. The Fed had kept interest rates unchanged in its previous policy meeting.

    Lower interest rates reduce the opportunity cost of holding non-yielding bullion and also weigh on the US currency. Investment demand for gold has surged as coroanavirus fears led investors to opt for the safe-haven.

    The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.6% to 929.84 tonnes on Tuesday, their highest over three years.

    Among other precious metals, palladium today jumped 1.6% to $2,677.09 an ounce while silver was up 0.4% to $18.24.

    In India too investors invested the most in gold ETFs in more than seven years in January, boosting assets managed by the 11 mutual funds selling the securities to 6,200 crore. This is 31% higher than a year earlier, but still about halve the 12,000 crore record touched in January 2013. Gold exchange traded funds witnessed a net inflow of 200 crore in January as compared to 27 crore in the preceding month. (With Agency Inputs)

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    Updated: 19 Feb 2020, 05:32 PM IST
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