Gold rate gains marginally on weak US economic data

NEW DELHI: Gold and silver prices gained in Thursday's session as data showed US economic growth rate has plunged to a record low, outlining the devastating impact of the coronavirus pandemic.

US gross domestic product plunged at a 31.4 per cent annualized rate in the second quarter, the steepest drop since the government started keeping records in 1947.

Gold futures on MCX were up 0.03 per cent or Rs 17 at Rs 50,351 per 10 grams. Silver futures gained 0.40 per cent or Rs 241 to Rs 60,160 per kg.



In the spot market, gold prices declined marginally by Rs 26 to Rs 51,372 per 10 gram in the national capital on Wednesday amid weak global prices and rupee appreciation, according to HDFC Securities. Silver prices also declined Rs 201 to Rs 62,241 per kilogram.

Globally, gold prices steadied in early trade on Thursday as a softer dollar and progress on another US coronavirus relief package countered pressure from an upbeat US private payrolls data.

Spot gold was steady at $1,884.67 per ounce by 0058 GMT. US gold futures were down 0.2 per cent at $1,890.90. The dollar index hovered around a one-week low hit in the previous session.

US Treasury Secretary Steven Mnuchin on Wednesday said talks with House Speaker Nancy Pelosi made progress on COVID-19 relief legislation, and the House of Representatives postponed a vote on a $2.2 trillion Democratic plan to allow more time for a bipartisan deal to come together.

European Central Bank President Christine Lagarde set the scene on Wednesday for a change of strategy that could align the ECB with the U.S. Federal Reserve, possibly including a commitment to let inflation overshoot after it has been low for too long.

Silver rose 0.2 per cent to $23.25 per ounce, platinum was up 0.4 per cent to $891.95 and palladium edged 0.2 per cent higher to $2,309.07.