Precious metals today: Gold and silver prices were trading near record highs after profit booking, tracking heightened buying sentiment from global markets as investors banked on hopes of economic stimulus globally. Central banks globally committing to an unprecedented level of money-printing has kept the metal demand high in overseas commodity markets.
In line with overseas commodity markets, Gold futures on MCX were trading 83 points higher at Rs 49,110 per 10 gm today against the previous close of Rs 49,027 per 10 gm, after hitting a lifetime high of Rs 49,348 earlier this month. Gold August Futures today touched an intraday high of Rs 49,169 and a low of Rs 49,036 today, after opening at 49,078 per 10 gm.
Silver futures in the domestic market too gained 2% or 1,126 to trade at 55,131 per kg today. Gold and silver prices in the commodity market have been scaling fresh highs as traders shunned risk and sought a safe haven during coronavirus crisis.
Comex Gold traded steady at $1,815 an ounce on Tuesday in overseas markets, although, above its eight-year high mark at $1,800 per ounce. Spot gold was up 0.1% at $1,817.23 per ounce, after hitting its 9-year high record of $1,820.06 on Monday, while US gold futures remained unchanged at $1,817.80 per ounce.
Overseas, silver also traded 2% higher at $20.19 per troy ounce, after hitting a near four-year peak as amid spike in COVID-19 infections on a global scale.
Worries over a spike in COVID-19 cases and hopes of inflation from more economic stimulus measures and weak dollar boosted demand for the precious metals. The yellow metal, widely known as an instrument to hedge against rising prices due to inflation and currency debasement has been recently in high demand.
Hopes of more government spending around the globe through major central banks have caused a surge in demand for precious metals in recent times. Rising coronavirus cases and ongoing tensions between the US and China has further led the demand for the risk-averse commodity.
On gold's near term outlook, Geojit Financial in its daily note said, gold is required to continue further upticks towards $1830 followed by $1882 levels. Else, a drop below $1785 expects corrective selloffs which may be extended towards $1770 or even more for the day. For MCX Gold August futures, the agency suggested resistance at Rs 49,300 and support at Rs 48,220.
Worldwide, the number of COVID-19 cases linked to COVID-19 disease has surpassed 1.46 crore.
In India, the number of coronavirus infections jumped to 11.55 lakh, after recording 37,148 new cases in the last 24 hours, while the total number of recoveries increased to 7,24,577.
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