Gold prices today jump, rise ₹1,500 in 3 days, silver rates surge1 min read . Updated: 03 Dec 2020, 05:24 PM IST
- Gold has bounced back from recent lows
- However, a sustained recovery in gold is unlikely unless ETF buying picks up, say analysts
Gold and silver prices in Indian markets rose today for the third day in a row. On MCX, February futures were 0.9% higher at ₹49379 per 10 gram while silver futures rose 1% to ₹64018 per kg. In the previous session, gold had jumped ₹400 per 10 gram, adding on Tuesday's ₹700 gain. Silver ended Wednesday's session ₹200 per kg higher, after a ₹3,000 rally on Tuesday.
"Gold fell sharply in last few weeks and tested the lowest level since June. However a drop near key support region of $1,780/ounce led to some relief rally. Gold bounced back gaining support from weaker US dollar," Kotak Securities said in a note. The dollar index was down 0.18% today.
In global markets, Spot gold rose 0.3% to $1,837.10 per ounce amid the weakness in US dollar. But Pfizer covid vaccine approval by Britain weighed on bullion's safe-haven demand though concerns about covid cases capped losses. Stock markets in Asia were mostly flat today with further advances kept in check by near-term virus concerns after spectacular November rally. Britain on Wednesday became the first country to approve Pfizer's covid vaccine. Focus is now on regulators in the US and Europe.
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Meanwhile, there are there are also growing hopes that US lawmakers may be inching towards an agreement on a fresh rescue package for the economy after a bipartisan plan was put forward this week.
Lifting risk appetite is signs of progress on vaccination front along with reports of progress on US fiscal stimulus talks, Kotak Securities said.
Commodities at large may also seek support from choppiness in US Dollar Index, it added.
Among other precious metals, silver fell 1.2% to $23.82 an ounce, while platinum dropped 0.7% to $1,007 and palladium was up 0.1% at $2,401.60.
"Gold prices has bounced back from recent lows and has rescaled the $1800/oz level indicating a halt in recent down trend. However, a sustained recovery in gold is unlikely unless ETF buying picks up or we see concrete stimulus measures. Hence we maintain that higher levels could be seen as a selling opportunity," Kotak Securities said in a note.