Gold prices today rise after ₹2,500 crash, silver rates jump2 min read . Updated: 10 Nov 2020, 09:10 AM IST
- Gold and silver prices had crashed in the previous session after Pfizer reported promising covid vaccine results
- Gold has shed most of the US election gains after the vaccine news
Gold and silver prices moved higher in Indian markets after a sharp fall in the previous session. On MCX, December gold futures were up nearly 1% to ₹50,219 per 10 gram while silver futures jumped 2% to ₹62116 per kg. In the previous session, gold had slumped ₹2,500 per 10 gram in Indian markets while silver had crashed ₹4,600 per kg after Pfizer reported promising results from a large-scale coronavirus vaccine study.
In global markets, gold prices edged higher today after falling over 5% in the previous session. Spot gold rose 0.5% to $1,871.81 per ounce. In the previous session, the precious metals fell $1,849.93, its lowest level since September 28, after US drugmaker Pfizer Inc said its experimental COVID-19 vaccine was more than 90% effective, based on initial trial results. Investors pulled out of defensive assets and poured cash into markets that are closely tied to economic growth. Gold has shed most of the US election gains after the vaccine news.
Among other precious metals, silver today rose 0.1% to $24.10 per ounce while platinum was up 0.2% at $868.30.
Most Asian stock markets were higher today following overnight rally on Wall Street that pushed US stocks to record highs.
Analysts say that hopes of more US stimulus measures helped support gold at lower levels. Concerns about surging coronavirus cases and legal challenges to the US election outcome also helped support at lower levels. Meanwhile, the Federal Reserve warned that asset prices in key markets could take a hit if the pandemic’s economic impact worsens in coming months.
ETF investors were on the sidelines after the vaccine news. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or gold ETF, fell 0.83% to 1,249.79 tonnes on Monday.
Back in India, inflows into gold ETFs continued in October despite a soaring equity market. During the month, gold ETFs saw net inflows of ₹384 crore, taking the overall assets under management to ₹13,969 crore, according to Latest figures released by mutual fund industry body, the Association of Mutual Funds in India (AMFI).
The gold price fall may boost jewellery demand in India. Dhanteras and Diwali will be celebrated this week.
Also, the eighth tranche of sovereign gold bond of this fiscal is open for subscription. The issue price has been fixed at ₹5,177 per gram of gold. A discount of ₹50 per gram will be available those investors applying online and the payment against the application is made through digital mode. (With Agency Inputs)