The Myriad Project, Muscat.

Gold prices rise today but still down ₹5,000 per 10 gram from recent highs

Gold prices in India today edged higher but still remained significantly off their recent highs. On MCX, gold futures gained 0.4% to ₹39,996 per 10 gram, extending gains to the second day. But the previous metal is still down about ₹5,000 per 10 gram from its record highs of about ₹45,000, hit earlier this month. Silver also tried to claw back some of its recent losses. Silver futures on MCX rose 2% to ₹35,870, on the back of another 2% gain in the previous session.

A pullback in the rupee however capped gold’s gains today in domestic markets. The rupee today rose to 74.81 per US dollar as compared to previous close of ₹74.99, its lowest ever.

In global markets, gold prices moved higher today after a sharp fall over the past few days as investors continued to sell assets to move into cash amid the coronavirus scare. Spot gold rose 1% to $1,484 but is down 3% for the week. Among other precious metals, silver gained 0.4% to $12.16 while Platinum rose 1.6% to $595.69.

Reflecting investors’ preference for cash, the holding of SPDR Gold Trust – the world’s largest gold-backed exchange-traded fund – fell 0.16% to 922.23 tonnes on Thursday.

A pause in US dollar’s rally against other currencies and higher Asian equities helped global gold rates move higher today. Analysts say that the monetary-easing measures announced by many global central banks would help support gold prices on the downside.

The Bank of England on Thursday pledged 200 billion pounds of bond purchases and cut its key interest rate to 0.1% in a second emergency move in just over a week.

Despite the sharp fall in gold prices in Indian markets, physical buying of jewellery in the country has been hit due to fewer footfalls at stores amid fear of the coronavirus spread. Besides, as a precautionary measure the government has shut malls, theatres and other crowded places.

(With Agency Inputs)