Gold prices in India on Tuesday rose 0.34% or Rs. 162 to Rs. 47188 per 10 gm. In the previous session, gold prices inched lower by 0.65% or Rs. 308 to Rs. 47026. Silver also inched higher 0.56% or Rs. 267 to Rs. 47660 per kg.
Trigger for the rise in gold price in India can be rising coronavirus cases which for some days now has been reporting over 10000 cases daily. In India, total corona postive cases have jumped to 3.43 lakh while in a span on 1 month, the number of corona cases can reach 8 lakh.
International Gold Rates
In trade today, gold internationally remains steady as the US dollar came under pressure after the Fed's bond buying programme. Spot gold was flat at $1,725.23 per ounce.
On Monday, Fed announced corporate bond purchasing program which revived investor sentiment amid second wave of coronavirus infection. As part of the program, a fund of up to $600 billion in loans will be extended to US businesses with up to 15000 employees or with revenue up to $5 billion.
In the previous session on gains in the dollar amid risk-off sentiment due to spike in coronavirus infection, gold prices remained steady in the international markets. Also, the rise in cases in China also poses the risk to demand for gold which happens to be the biggest consumer of gold.
Outlook on Gold Price
Ravindra Rao, VP- Head Commodity Research, Kotak Securities said a stable US dollar and weaker consumer demand has again limited the upside in the metal. However gold buying might re-emerge at lower levels as it is still supported by safe-haven buying amid bleak global growth outlook and increasing concerns about the second wave of infections.
Back home out of 20 gold refineries in India, 10 are shut as the country is not receiving impure gold from foreign nations including Switzerland, Ghana for processing. Also, at the same time, the MCX is mulling on accepting Indian refined bullion bars for delivery via their contracts.