Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Wednesday as concerns over rising cases of coronavirus infections led safe-haven buying amid bleak economic data from major economies. Weakness in Indian rupee also supported yellow metal prices in the domestic market, analysts said.
At 1:20 pm, gold futures for June delivery rose 0.45 percent to Rs 47,261 per 10 grams as against the previous close of Rs 47,050 and opening price of Rs 47,181 on the MCX. Silver futures traded 0.21 percent higher at Rs 48,925 per kg. The prices opened at Rs 48,970 as compared to the previous close of Rs 48,821 per kg.
Indian rupee traded lower, erased early gains, at 75.70 per dollar, amid positive domestic equity market.
“Concerns over second wave of coronavirus cases and fading optimism over its potential vaccine helped gains in gold prices. Investors will await US Federal Reserve minuted later today for further clarification on its stance on interest rates,” said Ajay Kedia, Director, Kedia Commodity.
Globally, gold prices firmed buoyed by rising demand for safe-haven investments, as the extent of damage from the coronavirus became more apparent following bleak data from major economies and optimism about a potential vaccine fizzled out.
Spot gold was up 0.2 percent to $1,746.58 per ounce. US gold futures rose 0.4 percent to $1,751.90.
Analysts expect the positive momentum in the gold prices to continue.
“On MCX, unless the gold prices go below Rs 46,500 levels, we expect the prices may touch new highs and trade near Rs 48,200 levels. On the global front, gold prices can go up to $1,800 levels,” Kedia added.
Meanwhile, even as the government has eased lockdown and allowed businesses to reopen in certain parts of the country, physical gold demand seems muted.
First Published: IST