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    Gold prices near record high levels as low interest rates make bullion attractive

    Synopsis

    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 and uncertainty.

    iStock
    Globally, gold rose on Friday en route to its best month in more than four years as the dollar slid further after dismal US data added to doubts about a swift recovery from the pandemic-induced economic slump, driving investors towards the safe-haven metal.

    Commodity Summary

    MCX
    NEW DELHI: Bullion counters rose in early Friday trade as surging coronavirus cases and low interest rate situation encouraged investor’s move towards safe haven counters. Meanwhile, weak GDP data from the US raised doubts about the pace of economic recovery.

    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 and uncertainty.

    Gold futures on MCX were up 0.89 per cent or Rs 470 at Rs 53,250 per 10 grams--hovering at record highs. Silver futures added 1.44 per cent or Rs 902 to Rs 63,572 per kg.

    Gold prices in the national capital rose by Rs 118 to Rs 53,860 per 10 gram on Thursday amid rupee depreciation, according to HDFC Securities. Silver prices, however, declined by Rs 2,384 to Rs 64,100 per kg.

    Gold Rates - Spot & Futures (.995 purity) (MCX)

    DateGold Spot Price
    Rs/10 grms (AHMEDABAD)
    Gold Future Price
    Rs/10 grms Expiry: 05-Oct-2020
    07-08-20205592254866
    03-08-20205361553735
    31-07-20205361553431
    27-07-20205226052316
    24-07-20205096051295
    21-07-20204926449682
    20-07-20204911849144
    17-07-20204894249115
    16-07-20204907748931
    13-07-20204914049253
    10-07-20204914348977
    06-07-20204816848350


    Globally, gold rose on Friday en route to its best month in more than four years as the dollar slid further after dismal US data added to doubts about a swift recovery from the pandemic-induced economic slump, driving investors towards the safe-haven metal.

    Spot gold was up 0.4 per cent at $1,966.31 per ounce by 0251 GMT after snapping a nine-session winning streak in the previous session. U.S. gold futures rose 1 per cent to $1,959.70.

    The U.S. dollar fell to a two-year low and was on course for its worst month in a decade, making bullion cheaper for investors holding other currencies.

    Gold has risen more than 10 per cent so far this month, its biggest monthly percentage gain since February 2016, having soared to an all-time high of $1,980.57 on Tuesday.

    Among other metals, silver was up 0.1 per cent at $23.56 an ounce, on course for its best month on record -- at 30 per cent, with additional support coming from hopes for a revival in industrial activity.

    Platinum eased 0.2 per cent to $900.82 and palladium dropped 0.5 per cent to $2,073.54.
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