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New Delhi, April 16 (IANS) Gold prices have climbed to an over one month high as inflation fears sweep the world while rising Covid cases rile the Indian economy.
Gold futures on MCX were up 0.35 per cent or Rs 162 at Rs 46,770 per 10 gm. Silver futures added 0.20 per cent or Rs 137 to Rs 67,775 per kg.
Navneet Damani, VP - Commodities Research, Motilal Oswal Financial Services, said that gold traded higher at more than one-month peak as US Treasury yields slipped despite better than expected US economic data, pushing investors to bullion as a refuge against possible inflation ahead.
"Concerns regarding inflation is increasing ahead of massive fiscal aids and ultra-low interest rates across the globe supporting the metal," he added.
Gold prices also got a boost after the US government imposed a broad array of sanctions on Russia as punishment for alleged misdeeds, including interfering in the 2020 US presidential elections. After a positive retail sales and weekly jobless claims, market participants will keep an eye on housing data and inflationary expectation from the US scheduled later in the day.
Damani said broader range on COMEX could be between $1,745 and $1,778 and on the domestic front prices could hover in the range of Rs 46,850-47,450.
Nish Bhatt, Founder & CEO, Millwood Kane International, an investment consulting firm, said the rise in the number of Covid cases, fear of the next wave coupled with rising inflation in the US, lower yields, weak US dollar, and the QE programme by the US government have also provided strength to gold prices.
The current situation of rising cases threatens to derail the economic recovery in Q1, and create uncertainties. The situation may lead to elevated gold prices in the short term till the situation stabilises.
The retail demand in India rising due to festive season buying has also provided support to gold prices. A pick-up in global economic activity will lead to subdued gold prices, but uncertainty remains with the risk of the second wave, which may guide gold prices in the longer term, Bhatt said.
--IANS
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