Gold Rates In India Steady After Falling Rs 1,400 From Record Highs

On Monday, gold prices in India were largely unchanged as growing concerns over worsening of COVID-19 conditions across the globe and US-China tensions leave investors leaning on the yellow metal. Gold futures on MCX (Multi Commodity Exchange of India) were trading 0.36 percent higher at Rs 54,985 per 10 grams at 10 am. In the international market, spot gold was steady at $2,033.40 per ounce.

Last week, gold and silver prices made record gains in the international and domestic markets but ended its rally as US dollar bounced back on positive data on American jobs.

Gold futures on MCX closed at Rs 54,789 per 10 grams on Friday, over Rs 1,400 less than its record high of Rs 56,191 during the day as US spot gold hit an all-time high of $2,072.50 an ounce.

A similar trend was seen in silver, which made significant gains last week. On Friday, silver futures on MCX opened at a high of Rs 77,949 per kg and closed nearly Rs 2,000 lower at Rs 74,160. However, on Monday, silver futures were trading higher by 1.29 percent at Rs 75,120/kg.

The safe-haven appeal of these precious metals is holding the prices steady as a number of coronavirus infections rise to more than 19.73 million over the weekend with the death toll rising to 726,414 according to a Reuters report.

On Saturday, US President Donald Trump signed executive orders partly restoring enhanced unemployment payments to the tens of millions of Americans who lost jobs in the pandemic. Tensions between the world's two largest economies gained spotlight after Trump signed separate executive orders banning two popular Chinese apps- Tik Tok and WeChat-in the United States

Gold is considered a safe investment in times of economic and political uncertainties.