NEW DELHI: Gold slipped while silver gained as traders were undecided on the direction of the market amid simmering tensions between US and China and a fast spreading coronavirus pandemic, which triggered hopes of more stimulus from governments.
The total COVID-19 patient count in India topped 9.37 lakh, the third highest in the world, with over 24,300 deaths. Due to this, many states have increased restrictions on businesses and movement, threatening economic recovery.
Silver futures were up 0.48 per cent or Rs 251 at Rs 52,900 per 10 grams. Gold futures dipped 0.08 per cent or Rs 37 to Rs 49,222 per kg.
Gold prices in the national capital on Tuesday fell Rs 114 to Rs 49,996 per 10 grams amid correction in the international prices of the precious metal and rupee appreciation, according to HDFC Securities. Silver also declined Rs 140 to Rs 53,427 per kg.
Globally, gold prices edged higher on Wednesday, holding firm above the psychological $1,800 level, as worries over surging coronavirus cases and simmering US-China tensions boosted demand for the safe-haven metal.
Spot gold was up 0.1 per cent at $1,808.61 per ounce by 0240 GMT. U.S. gold futures eased 0.1 per cent to $1,811.40.
Simmering tensions between Washington and Beijing also loom large, after U.S. President Donald Trump signed an executive order ending preferential treatment for Hong Kong and also shut the door on “Phase 2” trade negotiations with China.
The resultant safe-haven demand helped gold maintain its positive trajectory despite a strong rally in U.S. stocks overnight.
Reflecting increased investor interest in bullion, holdings of SPDR Gold Trust, rose 0.2 per cent to 1,206.89 tonnes on Tuesday- its highest since April 2013.
Investors now await the Bank of Japan‘s policy decision later in the day for economic projections and any reassurances of additional stimulus measures.
Elsewhere, palladium rose 0.3 per cent to $1,966.71 per ounce, platinum gained 0.2 per cent to $827.82 and silver edged 0.1 per cent higher to $19.22.