Gold hits fresh record high\, tops Rs 53\,200
NEW DELHI: Silver slipped in the early trade on Thursday while gold scaled fresh record high as the Federal Reserve kept rates close to zero and reiterated to do anything to get over the recession.
Gold tends to gain when interest rates are low, which reduces the opportunity cost of holding non-yielding bullion. Gold is also seen as a hedge against inflation.
Gold futures on MCX were up 0.11 per cent or Rs 57 at Rs 53,096 per 10 grams around 9.45 am. During the trade, the yellow metal hit all time high of Rs 53,297.
Silver futures dropped 0.23 per cent or Rs 149 to Rs 65,205 per kg.
Gold prices rose by Rs 710 to Rs 53,797 per 10 gram in the national capital on Wednesday, according to HDFC Securities. Silver prices also gained Rs 313 to Rs 65,540 per kg.
“Gold’s bullish outlook will remain intact due to increased demand for safe assets amid surging pandemic cases and a weaker US dollar. Hopes of fresh policy easing measures from Central banks and escalating geopolitical uncertainties also lifted the sentiments of the yellow metal. However, immediate profit taking cannot be ruled out due to weak physical demand and record high prices,” said Hareesh V, Head Commodity Research at Geojit Financial Services.
Globally, gold prices edged lower on Thursday as investors' appetite for riskier assets improved after the Federal Reserve pledged to support the coronavirus-battered U.S. economy, although a weaker dollar limited losses for the bullion.
Spot gold fell 0.3 per cent to $1,964.51 per ounce by 0052 GMT after rising 1 per cent in the previous session. US gold futures rose 0.3 per cent to $1,959.60.
At the end of its two-day policy meeting on Wednesday, the Fed said it will keep its interest rate target range until it is confident the economy has weathered the coronavirus pandemic and is on track for maximum employment and price stability goals.
SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.1 per cent to 1,241.96 tonnes on Wednesday.
Silver dropped 0.8 per cent to $24.21 per ounce, while platinum gained 0.6 per cent to $929.73 and palladium rose 0.3 per cent to $2,162.64.
“Gold’s bullish outlook will remain intact due to increased demand for safe assets amid surging pandemic cases and a weaker US dollar. Hopes of fresh policy easing measures from Central banks and escalating geopolitical uncertainties also lifted the sentiments of the yellow metal. However, immediate profit taking cannot be ruled out due to weak physical demand and record high prices,” said Hareesh V, Head Commodity Research at Geojit Financial Services.