Gold prices today rise for 4th day in a row, silver rates move higher1 min read . Updated: 21 Jan 2021, 09:12 AM IST
- Analysts say the general bias for gold may be on the upside amid hopes of continuing stimulus measures and persisting virus risks
Gold and silver prices rose today in Indian markets today, extending the sharp gains of the previous session. On MCX, February gold futures were up 0.3% to ₹49,674 per 10 gram in its fourth straight day of gains while silver futures rose 0.8% ₹67,513 per kg. In the previous session, gold prices had risen 1.2% while silver 1.6%. Gold prices have seen wild swings this year amid higher US bond yields, strengthening dollar and US stimulus announcement.
In global markets, gold prices dipped today on profit-taking after the sharp jump in the previous session. Gold was down 0.2% to $1,868.66 an ounce, after surging 1.7% in the previous session. Other precious metals silver and platinum too eased to $25.75 an ounce and $1,103.51 respectively.
Further stimulus plans, if any, from European Central Bank will be gold traders radar. Analysts expect the ECB to keep its easy money policy unchanged today but could signal further stimulus as the second wave of COVID-19 dims an already weak outlook.
Global stock markets have hit a record high on hopes that the US fiscal spending under the Biden administration will revive economic growth. The dollar index weakened 0.16% to 90.323 while the yield on 10-year Treasuries held at 1.08%. Gold is considered a hedge against inflation and currency debasement that can result from stimulus measures.
While market players have generally cheered the idea of additional stimulus, there is still uncertainty about tax hikes, currency management as well as US-China relations under new Biden regime, say analysts.
"Gold has witnessed mixed trade in last few days. We may see choppy trade within this range unless there are fresh triggers. However, the general bias may be on the upside amid hopes of continuing stimulus measures and persisting virus risks," Kotak Securities said in a note.
Development relating to virus outbreak and vaccine progress, trend in US dollar and more clarity on polices from Biden administration may continue to remain key price determining factor for gold and silver, it added. (With Agency Inputs)