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What are the gold prices in the global market?
The bullion was at a one-month high as the resurgence in covid-19 cases impacted the investor sentiment towards riskier assets. As investors remain jittery about the global economic recovery, it pushed them towards the safe-haven metal. Meanwhile, Spot gold was up 0.4 per cent at $1,749.54 per ounce after earlier hitting $1,751 during the session. US gold futures also witnessed 0.6 per cent jump to $1,763.80 per ounce.
Of other precious metals, silver soared 1 per cent to $17.78 and platinum was up 0.7 per cent to $811.10. Indicative of the risk-averse sentiment, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund (ETF), said its holdings rose 2.03% to 1,159.31 tonnes on Friday from 1,136.22 tonnes on Thursday.
What is the reason behind the rally?
Once again the fear of uncertainty has gripped the market amid the resurgence of Covid-19 cases across the world including China and the US. It has severely impacted the economic recovery which has started to gain pace due to geopolitical tensions which have made people turn to gold.
Gold is used as a safe investment during times of political and financial uncertainty. According to the World Health Organization, there has been the highest single-day rise in Covid-19 cases globally on Sunday. It has taken the toll to roughly 183,000 new cases within 24 hours. The highest number of cases has been reported from Brazil, which had 54,771 new infections, followed by the US, which reported 36,617. India reported over 15,400 cases.
Meanwhile, Apple on Friday announced temporarily shutting down some US stores in wake of rising cases in southern and western states.
Experts have said that the impact of the coronavirus crisis and the central bank’s policy easing measures may support the gold’s haven appeal. However, lifting lockdown restrictions and the rally in the equity market may hinder major rallies in the counter.
What are the latest prices?
At present, the price of 22-carat gold in New Delhi is at Rs 46,760 per 10 gram, while in Chennai it is Rs 46,090, according to personal finance and daily news website Good Returns. While prices in Mumbai, it is Rs 46,860 whereas prices of 24-carat gold prices in Chennai is Rs 50,280.
The gold prices in the domestic market include 12.5 per cent import tax and 3 per cent GST.
As per the news agency Reuters, in the domestic market dealers were giving a discount of up to $13 an ounce over official domestic prices last week. This is down from last week's $20.
(With Agency Inputs)