Gold Prices in India Drop Today
Gold prices in India drop today in early trade in the futures market amid muted global rates. This is the fourth day of decline in five days for gold but the correction has been shallow as the rising coronavirus cases continue to support the precious metal at lower levels.
In the previous session, gold had risen 0.34% while silver had surged 1.2%.
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Spot gold, in global markets, edged higher to $1,784.99 per ounce, closing in on the near eight-year high of $1,788.96, which was hit last week. Among other precious metals, platinum gained 1.1% to $821.76 while silver rose 0.5% to $18.30.
Globally, more than 1.15 crore people have been reported to be infected by a coronavirus and more than 5.3 lakh have died, according to Johns Hopkins University. This week India overtook Russia to record the world’s third-highest number of COVID-19 infections.
The latest data showed that US services industry activity rebounded sharply in June, almost coming closer to its pre-COVID-19 pandemic levels, but the emerging recovery is threatened by a resurgence in coronavirus cases.
Rising virus cases have fueled worries about the pace of reopening of economies and added to expectations that stimulus measures may continue, Kotak Securities said in a recent note. This has helped support gold prices.
The US dollar remained under pressure, making gold cheaper for holders of other currencies. On the other hand, global equity markets have edged up lately on expectations that economic recovery may continue amid record stimulus measures and easing of restrictions.
The fourth tranche of sovereign gold bonds of this fiscal (2020-21) opened for subscription on Monday and will remain open till July 10. The government is offering gold at ₹4,852 per gram while investors applying online and making payment through digital mode will get a discount of ₹50 per gram.