NEW DELHI:
Gold and silver edged higher on Wednesday as equities took a breather across the world. Equities and bullion usually have an inverse relationship. An unchecked rise in Covid-19 cases also kept inventors in search of safe havens.
Total number of Covid-19 patients in India reached over 2.7 lakh while fatalities climbed to 7,600 levels. Meanwhile,
the US Fed is also likely to announce its policy decision later in the day.
Gold futures were up 0.12 per cent or Rs 56 at Rs 46,650 per 10 grams. Silver futures added 0.13 per cent or Rs 61 to Rs 48,160 per kg.
Gold jumped Rs 402 to Rs 47,235 per 10 gram in the national capital on Tuesday helped by rise in the international prices of the precious metal, according to
HDFC Securities. Silver also witnessed rise in demand as it gained Rs 893 to Rs 49,344 per kg against Monday's close of Rs 48,451 per kg.
Globally, Gold extended gains as global equity markets eased after a recent rally, while
U.S. Treasury yields dropped ahead of the outcome of the Federal Reserve's meeting that is expected to shed light on the state of the economy and further stimulus.
Spot gold was up 0.1 per cent at $1,715.43 per ounce, as of 0248
GMT, after posting its best day in a month on Tuesday.
U.S. gold futures also edged up 0.1 per cent to $1,723.60.
The Fed has slashed interest rates near zero and rolled out a raft of stimulus measures to limit the economic damage from COVID-19.
Lower interest rates and widespread stimulus tend to boost demand for bullion, which is often seen as a hedge against inflation and currency debasement.
In other metals, silver gained 0.6 per cent to $17.69 an ounce, palladium climbed 1.2 per cent to $1,964.20, and platinum edged 0.1 per cent higher to $838.22.