/Gold rises above Rs 51,000 on positive global cues

Gold rises above Rs 51,000 on positive global cues

NEW DELHI: Gold and silver future prices rose in the opening trade on Tuesday tracking trend in international market amid rising Covid-19 cases in western countries, which has resulted in fresh curbs.

US House of Representatives Speaker Nancy Pelosi is hopeful that congressional Democrats and the Trump administration can reach agreement on the coronavirus relief bill before the elections, however White House economic adviser Larry Kudlow told reporters on Monday that talks have slowed.

Gold futures on MCX were up 0.33 per cent or Rs 170 at Rs 51,100 per 10 grams. Silver futures climbed 0.94 per cent or Rs 582 to Rs 62,488 per kg.

“Gold may edge higher on weak US dollar and a correction in global equities. Hopes of more fiscal stimulus measures and unresolved US-China tensions will also offer lower level support to the commodity. At the same time, possibilities of global economic recovery may dent the safe haven demand of the commodity,” said Hareesh V, Head of Commodity research, Geojit Financial Services.

In the spot market, gold prices fell Rs 59 to Rs 51,034 per 10 grams in the national capital on Monday, according to HDFC Securities. Silver also tanked Rs 753 to Rs 62,008 per kilogram.

Globally, gold prices gained in early Asia trade on Tuesday, supported by a weaker dollar and concerns stemming from the surging coronavirus spread globally and its economic fallout.

Spot gold rose 0.3 per cent to $ 1,907.77 per ounce by 0116 GMT. US gold futures were up 0.2 per cent at $ 1,909.20. The dollar index slipped 0.1 per cent against a basket of currencies, making gold cheaper for holders of other currencies.

Holdings in SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.14 per cent to 1,263.80 tonnes on Friday.

Silver fell 0.5 per cent to $ 24.45 per ounce, while platinum dipped 0.7 per cent to $ 895 and palladium eased 0.5 per cent to $ 2,382.12.

Silver rose 0.5 per cent to $ 24.43 per ounce, while platinum climbed 1 per cent to $ 878.50 and palladium was up 0.3 per cent to $ 2,358.03.

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Markets-Economic Times