Gold, Silver Prices On Downward Spiral; Check Latest Rates In Major Cities

Traders exited bullion counters at a high level after profit booking due to concerns over rise in the coronavirus cases and weak economic projections.

(Representative Image/ Getty)

New Delhi: Domestic gold and silver prices were on the downward spiral on Friday after rallying in the previous session. On MCX, August gold futures tumbled 0.7 per cent to Rs 47,082 per 10 gram after a Rs 800 rally in the previous session whereas Silver futures on MCX tumbled Rs 850 on Friday to Rs 47,805 per kg after a surge of over 1 per cent. In Delhi the cost of 22-carat gold is about Rs 46,150 per 10 gram, in Chennai, the price is Rs 45370 while in Mumbai it is Rs 46,100, according to Goodreturns.in. Traders exited bullion counters at a high level after profit booking due to concerns over rise in the coronavirus cases and weak economic projections. The total number of Coronavirus cases in India has reached 2,86,579 on Thursday, while the death toll of the country escalated to 8,102 cases. Also, the third tranche of sovereign gold bonds, which opened for subscription will close on Friday. The issue price for Sovereign Gold Bond has been fixed at Rs 4,677 per gram of gold, while you can avail a discount of Rs 50 if you apply and make an online payment. Globally, bullion prices remain flat as a result of a stronger dollar which took away the shine from safe-haven demand. Spot gold was flat at $1,727.24 per ounce while silver was down 0.4 per cent to $17.64, and platinum rose 0.2 per cent to $812.37. 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 opine that the impact of the coronavirus crisis and 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. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or ETF increased 0.5 per cent to 1,135.05 tonnes on Thursday.