Home > Markets > Commodities > Gold prices today rise sharply, up 1,000 per 10 gram in 2 days
Gold rate today: On MCX, prices rose to  ₹45,830 per 10 gram (Reuters)
Gold rate today: On MCX, prices rose to 45,830 per 10 gram (Reuters)

Gold prices today rise sharply, up 1,000 per 10 gram in 2 days

  • Increased tensions between US-China and concerns about health of global economy may increase the investment demand of gold: Analysts
  • Gold prices have been volatile in India since rising above 47,000 per 10 gram last month

Gold prices in Indian markets today jumped for the second day in a row amid a global riskoff move as US-China discord flared again and North and South Korea exchanged fire at their border. On MCX, June gold futures prices rose 0.7% to 45,830 per 10 gram, on the back of a 650 per 10 gram gain in the previous session. July silver futures edged 0.44% higher at 41,780 per kg. The two-day gain in domestic gold prices comes on the back of a four-day slide in the price in yellow metal amid swings in global risk-on, risk-off sentiments.

U.S. Secretary of State Michael Pompeo on Sunday said “enormous evidence" shows the novel coronavirus outbreak began in a laboratory in Wuhan, China. President Donald Trump had earlier sharpened their criticism of Beijing, demanding answers about the virus’s origin and hinting at possible tariff retaliation. In overseas markets, gold strengthened 0.3% to $1,705.57 an ounce.

Jigar Trivedi, research analyst for commodities at Anand Rathi Shares & Stock, said: "Rising U.S.-China tensions over the coronavirus kept bullion underpinned near the key $1,700 level. Sudden sharp weakness in the rupee has also supported the yellow metal. There are signs of retaliation from different countries against China and hence investment demand of gold is likely to go up."

The rupee today fell to 75.80 against the US dollar, amid a big selloff in domestic equities.

"Gold trades in a narrow range as increased safe haven buying is countered by firmness in US dollar index. Global risk sentiment weakened amid increased tensions between US-China and concerns about health of global economy as weaker economic data highlighted negative impact of virus outbreak," Kotak Securities said in a note.

"Weaker risk sentiment however also increased US dollar’s safe haven appeal and this has kept a check on gains in gold. Amid other factors, support from continuing investor inflows is countered by some improvement in virus related situation and weaker consumer demand. Gold holdings with SPDR ETF rose by 11.4 tonnes to 1067.9 tonnes, highest since May 2013," the brokerage said. (With Agency Inputs)

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