BackGold prices today fall after getting closer to record highs
Gold prices have been supported by strong flows into ETFsSurging coronavirus cases and expectations of more stimulus have buoyed gold rates
PremiumGold prices in India fell today after rising closer to record highs in the previous session. On MCX, August futures rates slipped 0.2% to ₹48,712 per 10 gram while silver futures edged 0.3% lower to ₹50,067 per kg. In the previous session, gold had surged 1.2% while silver 0.9%, tracking firm global rates. Last week, gold prices had surged to a record high of ₹48,982 per 10 gram.
In global markets, gold prices were steady at over eight-year high boosted by safe-haven demand due to surging coronavirus cases across the world. Expectations of more stimulus measures to prop up the economies also helped support gold.
Spot gold was steady at $1,793.56 per ounce. In the US, the total number of coronavirus cases was near the 30 million mark while the death toll jumped above 1.31 lakh, according to Johns Hopkins University website.
US Federal Reserve officials have expressed concern that the resurgence in coronavirus cases may threaten the pace of the recovery, pledging more support for the economy. Considered as a hedge against inflation and currency debasement, non-yielding gold benefits from widespread stimulus measures.
Many investors think gold will hold or increase its value as weak economic growth, government borrowing and central bank stimulus devalues other assets.
Investment demand for gold remained strong. The holdings of SPDR Gold Trust, the world's largest gold-backed ETF or exchange-traded fund, rose 0.66% to 1,199.36 tonnes on Tuesday.
Gold ETFs have added a record 734 tonnes to their holdings in the first half of this year, according to World Gold Council data.
By the end of June, gold-backed ETFs held 3,620 tonnes of gold worth $206 billion.
Despite weak physical demand in world's biggest gold consuming countries like India and China, ETF flows have helped gold prices jump 18% this year.
(With Agency Inputs)
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