Gold prices today rise amid surge in Covid-19 cases

NEW DELHI: Gold and silver prices gained in early trade on Tuesday as traders took refuge in bullion counters amid surging virus cases in Europe that threatened more restrictions on movement and businesses.

A surge in fresh coronavirus infections in countries such as France, Austria or the Netherlands are worrying, German Health Minister Jens Spahn said on Monday, adding that Germany will sooner or later import cases from there.

Gold futures on MCX were up 0.12 per cent or Rs 62 at Rs 50,533 per 10 grams. Silver futures advanced 0.74 per cent or Rs 452 to Rs 61,768 per kg.

Gold prices fell Rs 326 to Rs 52,423 per 10 gram in the national capital on Monday, in line with a weak global trend and rupee appreciation, according to HDFC Securities. Silver prices also declined Rs 945 to Rs 68,289 per kilogram.

Globally, gold prices inched up after slumping 3.4 per cent in the previous session, as the resurgent dollar held on to overnight gains, while economic concerns over fresh rounds of coronavirus-induced lockdowns across Europe also helped buoy the metal.

Spot gold rose 0.3 per cent to $ 1,918.20 per ounce by 1252 GMT. Bullion prices fell to their lowest level since Aug. 12 at $ 1,882.70 on Monday as the U.S. dollar soared to an almost six-week high. US gold futures gained 0.6 per cent to $ 1,921.50 on Tuesday.

Gold, which is often used as a safe store of value during times of political and financial uncertainty, has risen nearly 26 per cent this year.

Britain will face an exponentially growing death rate from COVID-19 within weeks unless urgent action is taken to halt a rapidly spreading second wave of the outbreak, the country’s senior medics said on Monday.

The world’s largest 50 investment banks are on track to double their income from precious metals this year to around $ 2.5 billion, most of it from gold, Coalition, a banking consultancy, told Reuters.

Silver gained 1.1 per cent to $ 25 per ounce, platinum was up 0.6 per cent to $ 886.20 and palladium rose 0.5 per cent to $ 2,285.44.