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Gold prices rise today as weak oil prices increase bullion’s safe-haven appeal, silver rates slump

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Gold prices in India gained on Tuesday as investors rushed to safe-haven assets amid spiking coronavirus cases and a crash in US crude oil prices. Gold June futures were trading Rs 177 or 0.39 per cent higher at Rs 45,891 per 10 grams, while silver May futures were ruling lower at Rs 42,661 per kg on Multi Commodity Exchange (MCX). An unprecedented move in crude oil price, which plunged below zero to hit negative $40.32 a barrel, increased bullion’s safe-haven appeal. “Gold prices continue to move in a broad range amidst dwindling share markets as U.S. crude prices plunged and concerns about coronavirus-linked economic damage persisted,” Navneet Damani, VP, Motilal Oswal Financial Services, said.

“As part of fourth stimulus deal, the US Congress inched toward a $450 billion deal to help small businesses and hospitals hurt by the coronavirus as the Senate set a Tuesday session for a potential vote on it,” Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers, told Financial Express Online. “Sentiments will be positive since investment demand has been supporting the prices”, Trivedi added. Globally, gold prices fell today after rising one per cent in the previous session as the dollar firmed. Spot gold eased 0.2 per cent to $1,689.45 per ounce. US gold futures fell 0.4 per cent to $1,704.60. Palladium rose 0.5 per cent to $2,175.04 an ounce, while platinum slipped 0.6 per cent to $765.70 and silver fell 1.5 per cent to $15.14.

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“Markets are less confident about the US and Europe reopening anytime soon. Broader trends on COMEX could be in the range of $1670-1710 and on domestic front prices could hover in the range of Rs 45,750-46,450,” Navneet Damani said.

On the domestic equity front, BSE Sensex and Nifty 50 were trading over 2.5 per cent lower on Tuesday. The 30-share Sensex was trading 835 points or 2.64 per cent down at Rs 30,813, while the broader Nifty 50 index was ruling at 9,028, down 234 points or 2.52 per cent.

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