Gold prices today continued their uptrend today for the second day in Indian markets. On MCX, June gold futures rose 1% or ₹464 to ₹46,631 per 10 gram, after a nearly 2% or ₹850 gain in the previous session. Silver today saw sharper gains, rising 2.3% or ₹931 to ₹42,647 per kg.
After hitting a fresh high of ₹47,327 per 10 gram, gold rates in India have remained volatile, tracking similar choppy movement in global markets.In global markets, gold prices moved lower today amid buoyant equity markets. Spot gold eased 0.2% to $1,710.23 per ounce after rising nearly 2% in the previous session. A rebound in global oil prices and hopes of more stimulus by governments kept equities afloat.
A firmer dollar also weighed on gold, making gold costlier for investors using other currencies. Gold, which is seen as a hedge against inflation and currency debasement, benefits from stimulus measures.
Investment demand for gold continued to remain strong. The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.9% to 1,042.46 tonnes on Wednesday.
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Supporting price is continuing ETF inflows which show robust investor interest. Also supporting price is continuing monetary stimulus measures to support economies from the negative impact of the virus outbreak, it added.
“Gold may remain choppy amid lack of clear direction however general bias may be on the upside as global growth worries are far from over while countries may continue with stimulus measures,” the brokerage added.
Bank of America recently raised its 18-month gold-price target to $3,000 an ounce. The bank increased its target from $2,000 previously, as policy makers across the globe unleash vast amounts of fiscal and monetary stimulus to help shore up economies hurt by the coronavirus.
Most spot gold markets in India remained shut due to the countrywide lockdown to prevent spread of coronavirus.
