BackGold prices today surge over ₹1,000 per 10 gram to 2-month high, silver jumps
Gold prices in India had been trading in a very narrow range over the past two weeksFresh decline in US real yields and a weak US dollar lifted gold prices
PremiumGold and silver prices today surged in Indian markets, tracking similar global trends. On MCX, February gold futures jumped ₹1025 to nearly two-month high of ₹51266 per 10 gram while silver rose ₹2,500 to ₹70,649 per kg. Gold prices had been trading in a very narrow range over the past two weeks. Concerns over a surge in coronavirus cases in some parts of the world were offset by rollout of coronavirus vaccines. In the previous session, gold had risen 0.17% while silver had ended flat.
In global markets, gold prices today rose to near two-month highs, supported by a weak dollar and concerns about a surge in new coronavirus cases around the world. In spot market, spot gold climbed as much as 2.3% to $1,942.07 an ounce
Among other previous metals, silver gained 2.4% to $26.98 an ounce while platinum gained 0.6% to $1,075.15 and palladium rose 0.6% at $2,461.95.
"Expectations over larger economic stimulus measures from US, extended weakness in US dollar and an increase in new virus cases in many western countries continue to lift gold’s demand as a safe investment. Meanwhile, signals of economic recovery and vaccine hopes perhaps limit major gains in the commodity," says Hareesh V, Research Head Commodities at Geojit Financial Services.
As long as prices stay above $1,890, he says, there are chances of continuation of rallies in the counter. Further weakness is seen only a close below $1,830, he added.
Gold traders will be awaiting the results for the two Senate seats due later this week. On Tuesday, Georgia will hold a run-off election for two US Senate seats that will decide control of the chamber. Also this week, the minutes of Fed's meeting will be out on Wednesday while US unemployment data will be released on Friday.
Gold’s recent gains have also been aided by renewed declines in US real yields, which boost the precious metal’s allure. The dollar index remained weaker against rivals today making gold cheaper for holders of other currencies.
ETF inflows also showed some buying interest in gold. Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.08% to 1,170.74 tonnes on Thursday.
Gold and silver zoomed last year as liquidity chased all asset classes, says Kotak Securities in a note. The outlook for silver has improved amid recovery in industrial activity across the globe, says the brokerage.
Gold logged over 25% gains last year while silver zoomed about 50%. Some analysts remain positive on gold for this year. "The environment of ultra-loose monetary policy and real rates in negative territory is here to stay for the year ahead that is likely to favor gold," Religare Broking said in a note.
(With Agency Inputs)
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