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In New Delhi, the price of 22-carat gold is at ₹46,200 per 10 gram, while in Chennai it is ₹45,470. The prices of 24-carat gold price in Chennai is ₹49,610. In Mumbai, the 22-carat gold is ₹46,050, as per the goodreturns.in. In global markets, the bullion prices were flat as the rising number of Covid-19 cases raised concerns among investors in the stock markets. Spot gold was flat at $1,726.69 per ounce. Other precious metals such as silver dropped 0.8 per cent to $17.45, and platinum lost 0.7 per cent to $813.26.
Investors are cautious of the resurgence of the second wave of infections amid growing geopolitical tensions. Experts opine that in the domestic market, commodities may find support from weakness in Indian rupee.
Although the US economy has started to come on track, it will need more help, said Federal Reserve Chair Jerome Powell told lawmakers on Wednesday. Federal Reserve has infused trillions of dollars of credit into the battered economy to support it in the wake of pandemic and also launched a corporate bond-buying program.
Stimulus measures and lower interest rates tend to support gold, which is often considered a hedge against inflation and currency debasement. The yellow metal is seen as a safe-haven asset in times of political and economic upheaval.
Experts believe that the impact of the coronavirus crisis and the central bank’s policy easing measures may support gold’s haven appeal. However, lifting lockdown restrictions on the rise in the equity market may hinder major rallies in the counter.
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