Gold prices today rise amid surge in Covid-19 cases

NEW DELHI: Gold and silver prices edged higher in early hours of trade on Tuesday as Covid-19 cases in India mounted and the rest of the world grappled with a second wave of infections.

Global cases of the novel coronavirus reached over 8 million on Monday, as infections surge in Latin America and the United States and China grapple with fresh outbreaks.

Gold futures were up 0.32 per cent or Rs 150 at Rs 47,176 per 10 grams. Silver futures gained 0.61 per cent or Rs 287 to Rs 47,680 per kg.

Gold prices fell by Rs 380 to Rs 47,900 per 10 gram in the national capital on Monday following decline in global prices, according to HDFC Securities. Silver prices also dipped by Rs 590 to Rs 48,200 per kg.



Globally, gold steadied on Tuesday supported by a weaker US dollar, which fell after the Federal Reserve announced it would buy individual corporate bonds in the secondary market, although an uptick in risk appetite limited bullion's advance. Spot gold was flat at $1,725.23 per ounce, as of 0052 GMT. US gold futures rose 0.4 per cent to $1,733.60 per ounce.

Gold tends to benefit from widespread stimulus measures from central banks as it is widely viewed as a hedge against inflation and currency debasement.

The US economy will experience a "significant, historic" contraction in the second quarter before it starts to rebound, and unemployment will remain elevated at the end of 2020, Dallas Federal Reserve President Robert Kaplan said on Monday.

Palladium climbed 1.5 per cent to $1,936.93 per ounce and platinum rose 0.7 per cent to $817.20, while silver fell 0.4 per cent to $17.37.