Gold rate slips as investors' risk appetite rises

NEW DELHI: Gold and silver saw profit booking in early trade on Wednesday as risk appetite among investors grew on hopes of a swift recovery in economic conditions. However, a sharp rise in coronavirus cases checked the losses.

India has reported a total of 7.4 lakh cases of coronavirus, the third highest in the world. Over 20,600 people have succumbed to the deadly virus.

Gold futures were down 0.19 per cent or Rs 95 at Rs 48,705 per 10 grams. Silver futures dipped 0.22 per cent or Rs 112 to Rs 50,090 per kg.



Gold prices in the national capital jumped by Rs 102 to Rs 49,228 per 10 gram on Tuesday amid rupee depreciation, according to HDFC Securities. Silver, however, declined by Rs 249 to Rs 50,573 per kg.

Globally, gold steadied near a more than eight-year high on Wednesday, as worries over surging coronavirus cases and hopes of more stimulus measures from the US Federal Reserve lifted demand for the safe-haven metal.

Spot gold was little changed at $1,792.79 per ounce by 0241 GMT, after hitting its highest since Nov 2011 at $1,796.93 on Tuesday, just a few dollars away from the key $1,800 level. US gold futures eased 0.2 per cent to $1,805.70.

Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.

Indicative of sentiment, holdings of SPDR Gold Trust rose 0.7 per cent on Tuesday. Weighing on gold, the dollar index rose 0.1 per cent.

Palladium gained 0.3 per cent to $1,921.69 per ounce and platinum was steady at $835.45, while silver lost 0.1 per cent to $18.28.