Gold and silver prices rebounded today in Indian markets after taking a breather in the previous session. On MCX, October gold futures were up 0.83% to ₹53,216 per 10 gram while silver futures surged 1.4% or ₹865 to ₹63,535 per kg. Gold has hit new highs this week, driven by a rally in global markets. In the previous session, silver had slumped over 4% or ₹2,762 per kg while gold had edged 0.4% lower.
In global markets, gold prices were steady today as a softer US dollar and concerns over mounting coronavirus cases supported the safe-haven demand of the metal. Spot gold was steady at $1,958.99 per ounce while US gold futures rose 0.5% to $1,953. So far this month, gold is up 10% this month in global markets, its biggest percentage rise in over four years.
The US dollar remained at a more than two-year low against its key rivals after US President Donald Trump suggested an election delay. A weaker dollar makes gold cheaper for holders of others currencies.
Among other precious metals, silver slipped 0.7% to $23.39 per ounce while, platinum eased 0.2% to $901.27.
"Gold’s bullish outlook will remain intact due to increased demand for safe assets amid surging pandemic cases and a weaker US dollar. Hopes of fresh policy easing measures from central banks and escalating geopolitical uncertainties also lifted the sentiments of the yellow metal," said Hareesh V, Head Commodity Research at Geojit Financial Service.
"However, immediate profit taking cannot be ruled out due to weak physical demand and record high prices."
Data released on Thursday showed US GDP collapsing at a 32.9% annualized rate during the second quarter, the deepest decline on record. Gold, which is up 28% this year, is seen as a safe store of value during times of political and financial uncertainty. A spike in covid cases across the world has driven inflows into safe-haven assets such as gold.
"The global response to the pandemic by central banks and governments, in the form of rate cuts and massive liquidity injections, fuelled record flows of 734 tonnes into gold ETFs (in the first half of this year). These flows helped lift the gold price, hitting record highs in many other currencies," World Gold Council has said in a report.