Prices for gold and silver today have risen in Indian markets, following a similar trend in the rest of the world. In the MCX, in February the future of gold rose to ₹1025 to about 26 months to a high of ₹51266 per 10 grams while silver rose to ₹2,500 to, ₹70,649 per kg. Gold prices were trading at a very small distance two weeks ago. Concerns about the increase in coronavirus cases in some parts of the world were eliminated by the release of coronavirus vaccines. In the past, gold had risen 0.17% while silver was flat.
In global markets, gold prices today have risen to nearly two months high, backed by a weak dollar and concerns about an increase in new cases of coronavirus worldwide. In the stock market, real gold rose by about 2.3% to $ 1,942.07 ounce among other previous metals, silver gained 2.4% to $ 26.98 ounce while platinum gained 0.6% to $ 1,075.15 and palladium increased by 0.6% to $ 2,461.95.
Expectations of major economic stimulus measures from the US, increased weakness in the US dollar and an increase in new virus cases in many western countries continue to raise demand for gold as a safe investment. Meanwhile, signs of economic recovery and vaccination prospects are likely to place significant profits on that product, “said Hareesh V, Research Head Commodities at Geojit Financial Services.
As long as prices remain above $ 1,890, he says, there is a chance for meetings to continue over the counter. Additional weakness is only seen at under $ 1,830, he added.
Gold traders will be waiting for the results of the two Senate seats that are due to arrive later this week. Georgia will additionally hold a run-off election for two U.S. Senate seats that will decide the administration of the chamber. And this week, the minutes of the Fed’s meeting will come out on Wednesday while details of unemployment in the United States will be released on Friday.
Gold’s recent gains have also been helped by a renewed decline in US real fruit, which increases the attractiveness of precious metals. The dollar index is always weak compared to competitors today which makes gold cheaper for other investors.
ETF inflows have shown some interest in buying gold. Meanwhile, the SPDR Gold Trust, the world’s largest gold exchange fund, said its holdings increased by 0.08% to 1,170.74 tonnes on Thursday.
Gold and silver were brought closer last year as currency purchases drove away all commodity classes, Kotak Securities said in a letter. The view of silver has improved in the midst of a recovery from industrial activity around the world, says a trading company.
Gold gained more than 25% profits last year while silver drew close to 50%. Some analysts remain optimistic about gold this year.
