Bengaluru: Gold prices today moved higher in Indian markets, extending gains to the 10th day. On MCX, August gold futures were up 0.21% to ₹53,300 per 10 gram. In 10 days the precious metal has soared about ₹5,500 per 10 gram or about 11%, tracking a global rally. Silver futures on MCX however edged 0.22% to ₹65,212 per kg.
In the previous session, gold had risen 1.4% or ₹730 per 10 gram, hitting a new high of ₹53,399 during the session. Silver had edged 0.5% higher. In global markets, gold rally has taken a breather after a nine-day rally that pushed prices to new highs. Spot gold was down 0.3% at $1,965.90 an ounce. On Tuesday, prices hit an all-time high of $1,981. Gold futures traded 0.2% higher at $1,981.60 after peaking at $2,000 this week.
Among other precious metals, silver also edged 0.2% lower to $24.2614 an ounce. So far this year gold has soared almost 30% in global markets amid a safe-haven demand for the metal, driven by weaker dollar, low interest rates and surge in coronavirus cases. Gold prices remained supported after US Federal Reserve left interest rates unchanged near zero and pledged to use all its tools to drive the economic recovery.
The Fed policymakers repeated its intention to hold rates near zero “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals”. Expectations of more stimulus have led to analysts still maintaining a bullish stance on gold. Goldman Sachs forecasts a surge to $2,300 an ounce.
The prospect of US interest rates being kept at zero for an extended amount of time put further pressure on the dollar, which hit a two-year low against the euro. Meanwhile, US lawmakers – Republicans and Democrats – still remained divided over their stimulus package. White House Chief of Staff Mark Meadows said the two sides were “nowhere close to a deal”.
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