Gold prices today up again, silver rates rise too
On the Multi Commodity Exchange (MCX), June gold futures were up 0.6% to Rs 47,331 per 10 gram, extending the previous session’s gain of Rs 435.Updated: May 20, 2020 10:21 IST
Gold and silver prices in India moved higher on Wednesday tracking firmness in the international spot prices amid growing concerns of a global recession.
On the Multi Commodity Exchange (MCX), June gold futures were up 0.6% to Rs 47,331 per 10 gram, extending the previous session’s gain of Rs 435.
Gold prices in India have moved higher in five out of six sessions, in tandem with a global rally in the precious metal. Earlier this week, gold had hit a record high of Rs 47,980 per 10 gram.
Silver futures also edged higher on MCX, up 1.17% to Rs 49,390 per kg.
Globally, gold prices gained on Wednesday as bleak data from major economies reflected the fallout from the coronavirus crisis, while the initial euphoria over a potential Covid-19 vaccine fizzled and gave way to safe-haven demand.
Spot gold was up 0.2% to $1,747.19 per ounce, as of 0256 GMT. US gold futures rose 0.4% to $1,753.30.
In testimony before the US Senate Banking Committee, Federal Reserve Chair Jerome Powell said the Fed was looking at extending access to the credit facilities to additional borrowers, including states with smaller populations.
“What the Fed does in the next few months will be pretty important, and certainly Powell did indicate that the rates would remain near zero for foreseeable future,” ANZ analyst Daniel Hynes said, according to Reuters.
Markets now await the Federal Open Market Committee’s April 28-29 policy meeting minutes due at 1800 GMT.
The US central bank has kept interest rates near zero and poured in massive stimulus to support the virus-ravaged economy.
Lower interest rates generally reduce the opportunity cost of holding the non-yielding bullion.
(With agency inputs)