Gold prices today fall as traders book profit at higher levels

Gold and silver slipped in early trade on Monday as traders booked profit at higher levels but the losses were capped due to worries over fast spreading coronavirus pandemic across the country.

The total COVID-19 patient count in India topped 11 lakh, the third highest in the world, with over 27,500 deaths. Due to this many states have increased restrictions on businesses and movement, threatening economic recovery.

Gold futures were down 0.12 per cent or Rs 61 at Rs 48,906 per 10 grams. Silver futures dipped 0.15 per cent or Rs 70 to Rs 52,899 per kg.

Gold prices in the national capital fell by Rs 271 to Rs 49,729 per 10 grams on Friday amid a strengthening rupee, according to HDFC Securities. Silver also declined by Rs 512 to Rs 53,382 per kg.

Globally, gold prices edged lower on Monday due to a stronger US dollar, but worries over surging coronavirus cases and its impact on the global economy kept the safe-haven metal above the psychological level of $1,800 per ounce.

Spot gold was down 0.1 per cent at $1,807.55 per ounce by 0242 GMT. U.S. gold futures fell 0.1 per cent to $1,808.30.

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

Speculators reduced their bullish positions in COMEX gold and increased them in silver contracts in the week to July 14.

Elsewhere, palladium gained 0.2 per cent to $2,024.40 per ounce, while platinum fell 0.6 per cent to $833.13 and silver dipped 0.3 per cent to $19.25.