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Gold rate drops amid rush for cash

Gold rate drops amid rush for cash

Gold and silver dipped on Thursday following the trend in global markets as investors preferred to sit on cash while coronavirus cases continued to rise in India.

With businesses shut in several cities in India amid rising threat of the coronavirus, investors are wary of betting on any asset class.

Gold futures were down 0.73 per cent or Rs 307 to Rs 40,952 per 10 grams. Silver futures were up 2.01 per cent or Rs 840 to Rs 41,038 per kg.

Spot gold markets in India remained shut on Wednesday due to countrywide lockdown to prevent spreading of Covid-19, according to HDFC Securities. A 21-day lockdown was announced on Tuesday to curb the spread of the coronavirus.

Globally, gold prices fell on Thursday as investors scurried for liquid cash while awaiting the passage of a $2 trillion dollar US stimulus package to combat the economic impact of the coronavirus epidemic.

Spot gold fell 0.6 per cent to $1,604.16 per ounce by 0038 GMT. US gold futures were up 0.3 per cent at $1,639 an ounce.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 1.41 per cent to 949.15 tonnes on Wednesday.

Palladium rose 2.9 per cent to $2,383.23 an ounce, having risen about 20 per cent in the previous session as a lockdown in major producer South Africa exacerbated supply woes.

Platinum fell 1.6 per cent to $726.48 an ounce, while silver was down 0.4 per cent to $14.37.

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