Gold prices surge today, silver follows suit

Gold prices surged today in global markets today as concerns about the impact of coronavirus on global economy continued to stoke the safe-haven demand for the precious metal. Spot gold rose over 1% to $1,634.95 per ounce. Among other precious metals, platinum gained 1.6% to $731.91, while silver climbed 1% to $14.54. The coronavirus pandemic has infected more than a million people worldwide, killed over 68,000 and prompted countries to extend lockdowns to curb its spread, paralysing large swathes of the global economy.

Back in India, gold prices had surged 1.1% on Friday to ₹43,720 per 10 gram in futures market. Commodity derivatives markets remain closed today in India due to a holiday.

Data released on Friday showed the US economy shed 701,000 jobs in March, ending a historic 113 straight months of employment growth as measures to control the coronavirus outbreak hurt businesses and factories.

Analysts say that though gold has seen an uptick in investment demand, absence of strong physical buying may cap the upside. In many parts of the world, including India, spot gold markets remain shut due to lockdowns.

Apart from worries about global economy, monetary and fiscal stimulus measures taken by various central banks may also lift the sentiments of gold like safe havens, says Hareesh V, head of commodity research at Geojit Financial Services. But strong dollar and moderate physical demand are likely to limit major rallies, he added.

The holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund (ETF), rose 0.72% to 978.99 tonnes on Friday - the highest holding in over three years.

Meanwhile, hedge funds and money managers reduced their bullish positions on COMEX gold and increased them in silver contracts in the week to March 31, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. (With Agency Inputs)