Gold prices in India fall, silver rises today
The lowest record of gold rate last month stood at Rs 45,300 on May 12 and the highest price was at Rs 47,600 on May 20.Updated: Jun 01, 2020 10:55 IST
India gold august futures slipped a bit on Monday despite a positive trend in international spot prices, which climbed on reports of riots over the death an African American man in police custody in the United States.
On the Multi Commodity Exchange (MCX), August gold contracts were trading lower by 0.18% at Rs 47,018 per 10 gram at 9:30am.
However, silver rose over expectations that reopening of economies will spark a revival in industrial demand for the metal. Silver futures on MCX rose 0.6% to Rs 50,409 per kg, adding its Rs 1,600 gain on Friday.
The lowest record of gold rate last month stood at Rs 45,300 on May 12 and the highest price was at Rs 47,600 on May 20.
Globally, gold prices rose on Monday as riots in major US cities rattled investors already reeling from strained Sino-US relations and boosted demand for the safe-haven metal, with a weaker dollar lending further support.
Spot gold gained 0.8% to $1,739.75 per ounce by 0242 GMT. US gold futures ticked up 0.1% to $1,752.60.
“Concerns about the unrest in the United States at the moment appear to be weighing on market sentiment,” said Michael McCarthy, chief strategist at CMC Markets, adding that rising tensions between the world’s top two economies provided further support to gold.
Protesters have flooded the streets in the United States over the death of George Floyd in police custody, in a wave of outrage sweeping a politically and racially divided nation.
The closely packed crowds and demonstrators not wearing masks have sparked fears of a resurgence of Covid-19, which has killed more than 101,000 Americans.
In Asia, China’s state media and the government of Hong Kong lashed out on Sunday at US President Donald Trump’s pledge to end Hong Kong’s special status if Beijing imposes new national security laws on the city.
Gold is often used as a safe store of value during times of political and financial uncertainty.
Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.3% to 1,123.14 tonnes on Friday, a fresh seven-year high.
Further supporting gold’s appeal, the dollar index.
DXY fell 0.4% against its rivals.
Elsewhere, silver jumped 2% to $18.20 per ounce, its highest since Feb. 26, before retreating slightly to trade 1.8% higher at $18.16.
Speculators cut their bullish positions in COMEX gold and increased them in silver contracts in the week to May 26, the US Commodity Futures Trading Commission said on Friday.
(With agency inputs)