BackGold prices today surge, up ₹1,500 in 2 days; silver jumps ₹3,000
A weak dollar and US-China tensions supported goldBut gold is down significantly off its recent highs
PremiumGold and silver prices moved higher today in Indian markets, tracking an advance in global rates. On MCX, October gold futures rose 1% to ₹53,800 per 10 gram. Silver futures jumped 2% to ₹70,554 per kg. In the previous session, gold prices had surged 2% or ₹1033 per 10 gram while silver had jumped 2.6% or ₹1,750 per kg. Earlier this month, on August 7, gold had hit a record high of ₹56,191 per 10 gram.
In global markets, gold rates back above $2,000 per ounce, supported by a weak US dollar. The dollar was down 0.23% at an over one-week low, making gold cheaper for those holding other currencies. Among other precious metals, silver climbed 1% to $27.69 per ounce, and platinum rose 0.9% to $957.73.
Also supporting gold was tensions between US and China, with the Washington announcing new restrictions on Huawei Technologies Co.
Gains in gold were however capped by a rally in US equities and some positive data from Japan. The Nasdaq hit a record high on Monday, while S&P 500 reached close to its record level. Japan's manufacturers were at their least pessimistic in four months in August, a survey of business sentiment showed.
Gold traders now await the minutes from the U.S. Federal Reserve's last policy meeting due for release on Wednesday.
Indicative of renewed investor interest in gold, the holdings of SPDR Gold Trust, the world's largest gold-backed ETF, rose 0.33% to 1,252.38 tonnes on Monday.
Many analysts remain bullish on gold. Slow global growth prospects amid rising threat of pandemic continue to provide support to the broad bullish outlook of the commodity, said Hareesh V,, head of commodity research, Geojit Financial Services.
Warren Buffett’s Berkshire Hathaway Inc has added Barrick Gold Corp, the world’s second-largest miner of the metal, to its portfolio. Berkshire on Friday reported a purchase of 20.9 million shares as of the end of the second quarter.
The move is seen significant as in the past, Buffett, the billionaire chairman of Berkshire, cautioned against investing in the metal because it’s not productive like a farm or a company. (With Agency Inputs)
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