Gold prices rise today as US riots trigger safe-haven demand; silver rates gain 23% in May

Gold & Silver
gold, silver
Globally, gold prices climbed as reports of riots in the United States rattled investors already reeling from the deepening Sino-US rift

Gold prices gained today on the back of riots in the US, tensions over Hong Kong security and rising coronavirus cases in India and elsewhere. Similarly, silver prices continued an upward march after the metal hit an all-time high on Saturday. Meanwhile, total coronavirus cases in India has now reached 1,90,535 with the death toll at 5,394. On MCX, gold August futures were trading Rs 146 or 0.31 per cent higher at Rs 47,250 per 10 grams. While silver July futures were ruling at Rs 50,900, up Rs 782 or 1.56 per cent. “MCX silver crossed the Rs 50,000 mark comfortably as the Gold/Silver ratio has cooled down from 114 (1st May 2020) to 97 as on today. Silver on the MCX gained 23% in May and we believe the same momentum will continue for some more sessions,” said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers.

Denting risk appetite further, Federal Reserve Chair Jerome Powell’s comments on Friday signalled that a potential surge in US coronavirus infections could derail recovery from the downturn caused by the pandemic. “Hence, it would be safe to go long in the yellow metal as safe-haven investment demand has continued to increase,” Trivedi added. Globally, gold prices climbed as reports of riots in the United States rattled investors already reeling from the deepening Sino-US rift, fanning concerns of a fresh economic setback and drove traders towards the safe-haven metal, according to Reuters. Spot gold was up 0.6 per cent at $1,736.31 per ounce. US gold futures were flat at $1,751.30. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings, rose 0.3 per cent to 1,123.14 tonnes on Friday. Palladium inched up 0.1 per cent to $1,947.01 per ounce. Among other precious metals, silver rose 1.1 per cent to $18.04, while platinum declined 0.7 per cent to $830.81.

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On the domestic equity front, benchmark indices were trading with over 3 per cent gains. BSE Sensex was up 1,071 points or 3.30 per cent at 33,495. While the broader Nifty 50 index was nearing 9,900-mark.

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