Gold prices slip but hold above Rs 52,000 mark

NEW DELHI: Gold witnessed profit booking in Thursday's morning session as equities rose on improving macro data from the US while silver was back to winning ways after a massive slump in prices over the last couple of sessions.

Rising fuel costs lifted US consumer prices 0.6 per cent last month, compared with expectations for 0.3 per cent, leaving core inflation at 1.6 per cent for the year to July. Gold tends to gain when interest rates are low and political and economic uncertainties are high, and vice versa.

Gold futures on MCX were down 0.14 per cent or Rs 74 at Rs 52,180 per 10 grams. Silver futures added 0.44 per cent or Rs 293 to Rs 67,046 per kg.



Gold prices tanked Rs 1,228 to Rs 52,946 per 10 gram in the national capital on Wednesday, according to HDFC Securities. Silver prices also plunged Rs 5,172 to Rs 67,584 per kg.

Globally, gold prices rose on Thursday, holding firm above the key $1900 per ounce level, as a weaker US dollar and concerns over the global economic recovery from the mounting coronavirus cases boosted demand for the safe-haven metal.

Spot gold was up 0.7 per cent at $1,930.78 per ounce by 0034 GMT. US gold futures eased 0.5 per cent to $1,940.

The dollar index fell 0.2 per cent against its rivals, making gold less expensive for holders of other currencies.

Benchmark 10-year Treasury yields dipped from one-month highs, reducing the opportunity cost of holding non-interest bearing gold.

Silver rose 0.6 per cent to $25.71 per ounce, platinum gained 0.7 per cent to $937.84 and palladium climbed 1.2 per cent to $2,156.55.