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Gold prices near record high levels as low interest rates make bullion attractive
NEW DELHI: Bullion counters rose in early Friday trade as surging coronavirus instances and low interest price state of affairs inspired investor’s transfer in the direction of protected haven counters. In the meantime, weak GDP information from the US raised doubts in regards to the tempo of financial restoration.
Gold tends to achieve when interest rates are low, which reduces the chance price of holding non-yielding bullion. Gold can also be seen as a hedge in opposition to inflation and uncertainty.
Gold futures on MCX had been 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 within the nationwide capital rose by Rs 118 to Rs 53,860 per 10 gram on Thursday amid rupee depreciation, in line with HDFC Securities. Silver prices, nonetheless, declined by Rs 2,384 to Rs 64,100 per kg.
Globally, gold rose on Friday en path to its greatest month in additional than 4 years as the greenback slid additional after dismal US information added to doubts a couple of swift restoration from the pandemic-induced financial stoop, driving traders in the direction of the safe-haven steel.
Spot gold was up 0.four per cent at $1,966.31 per ounce by 0251 GMT after snapping a nine-session successful streak within the earlier session. U.S. gold futures rose 1 per cent to $1,959.70.
The U.S. greenback fell to a two-year low and was heading in the right direction for its worst month in a decade, making bullion cheaper for traders holding different currencies.
Gold has risen greater than 10 per cent up to now this month, its greatest month-to-month share acquire since February 2016, having soared to an all-time high of $1,980.57 on Tuesday.
Amongst different metals, silver was up 0.1 per cent at $23.56 an oz, heading in the right direction for its greatest month on record — at 30 per cent, with further help coming from hopes for a revival in industrial exercise.
Platinum eased 0.2 per cent to $900.82 and palladium dropped 0.5 per cent to $2,073.54.