Gold prices surged today globally but more particularly in Indian market as concerns over a new Covid-19 variant spreading in South Africa boosted the metal’s safe-haven appeal.
A news report by livemint.com, an online medium, indicated that on India’s MCX, December gold futures rose 1.4% to ₹48,073 per 10 gram while silver futures jumped 0.4% to ₹63420 per kg.
But then, despite today’s surge, gold prices remained lower by about ₹1,200 per 10 gram from this month’s high as fears of earlier-than-expected tightening of US monetary policy weighed on the precious metal.
On global markets, the news report showed that spot gold jumped 1% to $1,805.56 per ounce. Also aiding gold’s climb, the dollar index eased 0.2% from a 16-month peak scaled earlier this week, while US benchmark 10-year Treasury yields also weakened. A weaker dollar reduces gold’s cost to buyers holding other currencies.
Among other precious metals, the news medium reported that spot silver was steady at $23.57 per ounce while platinum fell 1.2% to $983.22.
In a note on the metals’ market trend, Geojit projected that a turnaround remained possible as long as gold holds the support of $1780 but that an unexpected drop below the same would negate the trend and liquidate further, said in a note.
On silver, it added: “Expect a choppy trade inside $25.50-23 levels initially. Breaking any of the sides would suggest fresh short term direction.”
Meanwhile, the spread of the new variant in South Africa and some other countries has prompted Britain and some other countries to hurriedly introduce travel restrictions on the African nation.
The World Health Organization (WHO) and scientists in South Africa are already studying the recently identified variant, which has been described as very different to previous versions and of serious concern.
The news medium further reported that equities sold off today as the detection of the strain comes on top of concerns in markets about high inflation and the prospect of quicker exit from ultra-loose monetary settings.
