Gold Prices Continue To Gain; Silver Jumps To Over Rs. 70000 Per Kg

Mirroring trend in the international gold price, gold price in India gained as there was weakness in dollar and also stimulus hopes in the US also boosted sentiment.

Gold prices on the MCX traded higher by Rs. 141 to above Rs. 47400 per 10 gm, while silver with marginal gains jumped above Rs. 70000 per kg. Spot gold edged up 0.1% to $1,820.71 per ounce. U.S. gold futures declined 0.1% to $1,822.10, while silver gained 0.2% to $27.63.

Softness in dollar, pushes gold higher but gains capped due to higher treasury yield
Nonetheless, while there were losses seen in the dollar, inflationary pressure due to the global liquidity also led to hardening of US yield, which resulted in increasing the opportunity cost of holding the bullion.

Another factor that is limiting gains in the commodity is the economic recovery hopes propelling diversion of funds to other riskier assets as is imminent with global markets inching higher for the 12th straight session.

Platinum is rallying for third-straight day

Platinum is inching higher in price for the third straight day as the world over economic recovery is also likely to boost its demand. On the sentiment, platinum prices are now at a six and a half year high. Platinum rose 1% to $1,315.32 by 0102 GMT.
Also, the annual supply deficit concern is also fuelling price rise of the commodity.

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