Gold prices today fall for second day in a row, silver edges higher2 min read . Updated: 11 May 2020, 09:35 AM IST
- Gold prices have struggled at higher levels due to weak physical demand
- But in the past one year, gold prices are up about 40%
Gold prices in India fell for the second day in a row despite positive global cues. On MCX, June gold futures were down 0.2% to ₹45,722 per 10 gram, after falling 0.70% in the previous session. Silver prices however edged 0.42% higher to ₹43,475 per kg.
In global markets, gold prices were higher, holding above key $1,700 per ounce level. Despite firmer equities and a stronger dollar, gold held firm on worries about a new wave of coronavirus infections as many countries are gradually reopening their economies. Spot gold climbed 0.2% to $1,704.26 per ounce. Among other precious metals, platinum rose 0.7% to $770.66 while silver climbed 0.4% to $15.51.
The second tranche of government of India's gold bonds of this fiscal year opened for subscription today at a time when the investment demand for the precious metal is rising. It will close on May 15. The price of per gram of gold has been fixed at ₹4,590 while those applying online and making payment through digital mode will get a discount of ₹50 per gram.
South Korea has warned of a second wave of the new coronavirus while China on Sunday the highest daily increase in cases since April 28. Wuhan, the epicentre of the outbreak in China, reported five new locally transmitted COVID-19 cases, the highest since March 11.
On the other hand, some increase in physical gold demand improved was seen in China, the world's biggest consumer, though activity remained muted in other countries due to lockdowns and holidays.
Later this week, Federal Reserve Chair Jerome Powell is due to give a key note speech, an event which will be on the radar of gold traders.
Though analysts remain positive on gold amid the coronavirus crisis and massive stimulus announced by central banks, they say that weak physical demand may put pressure on prices at higher levels. Besides, supply worries have eased as some refiners have resumed operations.
Data released on Friday showed the US shedding a staggering 20.5 million jobs in April, the steepest plunge in payrolls since the Great Depression. The head of the International Monetary Fund on Friday warned the United States and China against rekindling a trade war that could weaken recovery from the pandemic.
US President Donald Trump said on Friday he was "very torn" about whether to end the so-called Phase 1 U.S.-China trade deal, just hours after top officials from both countries pledged to press ahead with implementing. (With Agency Inputs)