Gold has struggled to extend gains after hitting record high this week
A surge in prices is weighing on consumer demand of gold, say analysts
Gold prices in India declined slightly today amid muted global rates. On MCX, gold prices edged 0.01% lower to ₹48,872 per 10 gram after falling 0.6% in the previous session. Gold has struggled to extend gains after hitting record high of ₹49,348 earlier this week. Silver prices however edged higher today on MCX. Silver futures on MCX rose 0.25% to ₹51,217 per kg. Weighing on gold prices are concerns about consumer demand with prices rising to record highs, say analysts.
In global markets, gold prices remained flat but held above the key $1,800 level. On a weekly basis, gold is set for a fifth straight weekly gain as a continuous surge in covid cases in the world boosted the safe-haven appeal of gold. Spot gold was little changed at $1,801.69, up more than 1.5% for the week. US gold futures rose 0.2% to $1,806.90 per ounce.
Among other previous metals, platinum declined 0.7% to $827.73 and silver slipped 0.1% to $18.65.
More than 60,000 fresh COVID-19 cases were reported across the United States on Wednesday, the biggest ever single-day tally by any country.
Gold is used as a safe investment during times of political and financial uncertainty.
Despite rising virus cases, US and global equity markets are still holding on recent gains amid hopes that countries may avoid major shutdowns and stimulus measures may help economic recovery pick up pace, Kotak Securities said in a recent note.
Gold may continue to trade with a positive bias amid increasing challenge from rising virus risks and US-China tensions however some caution is needed as equity markets continue to hold strong, it added.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or gold ETF, said its holdings fell 0.15% to 1,200.82 tonnes on Thursday.
The latest sovereign gold bond issue, which opened for subscription on Monday, closes today. The issue price of the sovereign gold bond issue has been fixed at ₹4,852 per gram while investors applying online and making payment through digital mode will get a discount of ₹50 per gram.