Gold prices today rise for 4th day in row but down ₹8200 from record highs1 min read . Updated: 10 Feb 2021, 09:16 AM IST
- A weaker US dollar has lifted gold rates over past few sessions
- But ETF buying remained weak, capping gold's advance
Gold and silver prices edged higher in domestic markets, reflecting positive trend in global rates. On MCX, gold futures rose 0.2% to ₹48,046 per 10 gram in its fourth straight day of advance while silver futures gained 0.25% to ₹69,860 per kg. In global markets, gold inched higher, supported by a weaker US dollar and expectations that US lawmakers will soon able to approve a massive stimulus package. Spot gold rose 0.2% to $1,839.99 per ounce.
Among other precious metals, spot silver gained 0.6% to $27.36 an ounce while palladium was down 0.3% to $2,312. Platinum rose breached the $1,200 barrier for the first time in six years on supply deficit concerns.
The dollar fell to near one-week low against a basket of currencies. A weaker greenback makes dollar-denominated commodities more affordable for holders of other currencies.
ETF buying however remained weak. SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.4% to 1,148.34 tonnes on Tuesday from 1,152.43 tonnes on Monday.
Gold traders will be watching for comments from US Federal Reserve Chairman Jerome Powell who speaks later in the day at a virtual event. The US consumer price data is also due today.
Asian equity markets were mostly higher today. Falling covid infection rates in some countries, growing vaccination programmes and the prospects of a huge spending splurge by the US government have kept the risk-on sentiment afloat.
Markets remain upbeat about the chances of Joe Biden pushing through his $1.9 trillion economic rescue package. Biden said he was "optimistic" bipartisan agreement could be passed.
Gold prices have remained very volatile this year after a 25% advance last year. The volatility in US dollar and higher US bond yields have weighed on the yellow metal.
Hopes of additional US stimulus and loose monetary policy stance of major central banks have also lent some support to gold prices, say analysts.
"Also supporting price is expectations of pickup in consumer demand with Chinese Lunar New Year holidays andlower domestic price in India following cut in import duty in the Budget. However, weighing on price is improved risk sentiment, rise in bond yields and weaker investor interest," Kotak Securities said in a note.
(With Agency Inputs)
Never miss a story! Stay connected and informed with Mint. Download our App Now!!