Gold prices today edge higher as rising Covid cases spur safe-haven demand

Gold prices traded higher in Tuesday’s early trade as fears over rising coronavirus cases around the world boosted demand for the safe-haven metal.

MCX Gold futures were up 0.07 per cent at Rs 48,279 per 10 gram, while Silver futures traded 0.34 per cent higher at Rs 49,151 per 1 kg at around 9.05 am (IST).

Confirmed Covid-19 cases worldwide exceeded 1 crore and deaths surpassed 500,000 over the weekend.

SPDR Gold Trust, holdings increased 0.3 per cent to 1,178.90 tonnes on Friday, while speculators increased their bullish positions in COMEX gold and silver contracts in the week to June 23, according to Reuters.

“Concern over the uptick and spread the virus has been highly supportive of the safe haven asset class, specifically gold,” Reliance Securities said in a report.

Global gold prices held steady and were heading for their biggest quarterly rise in more than four years.

Spot gold was mostly unchanged at $ 1,770.77 per ounc, just $ 8.29 shy of a near eight-year high of $ 1,779.06, hit last week.

Bullion, with more than 12 per cent gains this quarter, is on track for its best quarter since end-March 2016. Gold was also headed for its third straight monthly gain.

US gold futures were flat at $ 1,781.20.

Palladium eased 0.1 per cent to $ 1,902.68 per ounce, while platinum rose 0.1 per cent to $ 806.22 and silver lost 0.3 per cent at $ 17.81.