Gold prices trade near record high as Covid-19 rages on

NEW DELHI: There is no stopping the rally in bullion counters. Gold marched ahead and traded near its peak on Thursday, tracking the trend in the global market and on rising worries over fast spreading COVID-19 outbreaks. Silver also jumped to cross Rs 72,000 level.

India has reported over 19.6 lakh COVID-19 cases by now with more than 40,700 deaths. Gold tends to gain when interest rates are low and political and economic uncertainties are high.

Gold futures on MCX were up 0.34 per cent or Rs 185 at Rs 55,283 per 10 grams--hovering at record highs. Silver futures added 1.05 per cent or Rs 752 to Rs 72,645 per kg.



Gold prices jumped Rs 1,365 to Rs 56,181 per 10 gram in the national capital on Wednesday following a strong rally in the global market, according to HDFC Securities. Silver also depicted a strong trend as it zoomed Rs 5,972 to Rs 72,726 per kg.

Globally, gold prices held steady near record highs on Thursday as a weaker U.S. dollar and hopes of more stimulus measures to mitigate the economic fallout from the pandemic underpinned the metal's safe-haven appeal.

Spot gold was steady at $2,039.75 per ounce by 0042 GMT, after hitting an all-time high of $2,055.10 on Wednesday. US gold futures rose 0.3 per cent to $2,055.90.

The rapid rise in virus cases has dented hopes of a swift economic rebound, driving inflows into safe-haven assets such as gold, which has risen more than 34 per cent so far this year.

US private payrolls growth slowed sharply in July, pointing to a loss of momentum in the labor market and overall economic recovery as new COVID-19 infections spread across the country.

Top congressional Democrats and White House officials appeared to harden their stances on new coronavirus relief legislation, as negotiations headed toward an end-of-week deadline with no sign of an agreement.

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.8 per cent to 1,267.96 tonnes on Wednesday.

Silver fell 0.4 per cent to $26.91 per ounce, while platinum rose 0.4 per cent to $970.67 and palladium was steady at $2,181.77.