Gold prices gain as investors rush to safety

Gold prices gain as investors rush to safety

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NEW DELHI: Gold edged higher on Wednesday as fast rising coronavirus cases in India despite strict lockdown measures increased worries of the investors, leading to a rush to safe haven assets.

Investors are keenly watching the situation as select businesses have started working from this week. A glitch free resumption can lift investor sentiments. The number of reported Covid-19 cases were at 19,984, as per the government data.

Gold futures were up 0.97 per cent or Rs 438 to Rs 45,763 per 10 grams. Silver futures slipped 0.31 per cent or Rs 128 to Rs 41,620 per kg.

MCX Gold June on Monday held onto the immediate support near 45,300 levels. However, upside 45,900 levels remained intact and will act as resistance in the coming session. So, intraday MCX Gold is expected to consolidate in a range of 45,200-45,900,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Spot gold markets remained shut due to the lockdown to prevent spread of Covid-19, according to HDFC Securities.

Globally, gold prices held steady on Wednesday as fragile equities, hammered by falling crude prices, offset a stronger U.S. dollar.

Spot gold was steady at $1,685.46 per ounce by 0041 GMT. U.S. gold futures were up 0.9per cent at $1,703.60.

The metal fell as much as 2per cent in the previous session as investors scurried for cash to cover losses in other asset classes mainly driven by a plunge in oil prices.

SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.37per cent to 1,033.39 tonnes on Tuesday.

Palladium rose 2.1per cent to $1,963.68 per ounce, having touched a near one-month low in the previous session.

Platinum gained 0.4per cent to $749.76 per ounce, while silver eased 0.3per cent to $14.88

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