Gold prices today gain on rush to safe havens

Gold and silver extended their rally to Monday as fast rising coronavirus cases in India in spite of strict lockdown measures expedited inventors’ rush to safety.

The total number of Covid patients in India have surpassed 28,000, according to government data. Meanwhile, there is no concrete decision on an economic stimulus that the government has promised, which is giving anxiety to investors.

Gold futures were up 0.147 per cent or Rs 66 to Rs 46,593 per 10 grams. Silver futures added 0.66 per cent or Rs 278 to Rs 42,329 per kg.



Spot gold markets remained shut due to the lockdown to prevent spread of COVID-19, according to HDFC Securities. With jewellery shops shut due to the lockdown to control coronavirus, the demand for gold on auspicious Akshaya Tritiya is estimated to plunge by around 95 per cent and only negligible sales happening through digital mode.

Globally, gold prices edged lower on Monday as equities firmed, while expectations for more economic stimulus measures limited losses.

Spot gold eased 0.3 per cent to $1,722.49 per ounce by 0135 GMT. U.S. gold futures rose 0.4 per cent to $1,742.60.

Retail demand for physical gold suffered last week in top Asian hubs as jewellery shops remained shut due to coronavirus restrictions, but some regions saw steady buying from investors hunting for a safe haven.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.6 per cent to 1,048.31 tonnes on Friday from 1,042.46 tonnes on Thursday.

Palladium rose 0.4 per cent to $2,032.80 per ounce, while platinum gained 0.8 per cent to $766.04 and silver was flat at $15.24.