Gold and silver saw profit booking in the opening trade on Tuesday even as Covid-19 patient count surged across the world, making the job of governments very difficult to ensure economic recovery.
Total number of Covid-19 patients in India reached over 4.4 lakh while fatalities climbed above 14,000 levels. New infections spiked in Latin America, particularly in Brazil.
Gold futures were down 0.01 per cent or Rs 5 at Rs 47,939 per 10 grams. Silver futures shed 0.40 per cent or Rs 193 to Rs 48,307 per kg.
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Gold prices in the national capital fell Rs 85 to Rs 48,811 per 10 gram on Monday amid rupee appreciation,
Globally, gold prices edged up on Tuesday after notching a more than one-month high in the previous session, as Covid-19 cases around the world surged and nervous investors opted for safe-haven assets.
Spot gold was up 0.2 per cent to $1,758.03 per ounce as of 0124 GMT. Prices hit $1,762.84 per ounce on Monday, its highest level since May 18. U.S. gold futures edged 0.2 per cent higher to $1,770.10 per ounce.
Gold is often used as a safe store of value during times of political and financial uncertainty.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.6 per cent to 1,166.04 tonnes on Monday from 1,159.31 tonnes on Friday.
India Gold August futures are trading flat with a positive bias on June 23 tracking muted trend in the international spot prices. Experts feel that the trend in the yellow metal is likely to remain sideways, and it could face resistance around Rs 48,300 per 10 gm.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.02 percent at Rs 47,952 per 10 gram at 09:30 hours. July futures for silver were trading 0.28 percent lower at Rs 48,500 per kg.
Gold and silver extend gain in the international market on Monday. Gold settled at $1,766 per troy ounce and Silver settled at $17.90 per troy ounce, but due to strength in rupee both the precious metals settled almost flat in the domestic market.
“Fresh stimulus talks of around $1 trillion in the US restrict gains in both the precious metals. However, lower than expected U.S. new home sales numbers and weakness in dollar index support bullion prices,” Manoj Jain, Director (Head – Commodity & Currency Research) at Prithvi Finmart Pvt Ltd told Moneycontrol.
“Indo-China border tensions are also supported safe-haven buying in both the precious metals. Both the side move is expected in precious metals in Tuesday’s session,” he said.