Gold rate rises amid coronavirus

Gold and silver edged higher in the morning trade on Monday as worried by rising coronavirus cases in India and other parts of the world, investors rushed away from risky assets and towards a safe haven.

India has reported 8.8 lakh cases of coronavirus till now, the third-highest in the world, with over 23,100 deaths. Due to this many states have increased restrictions on businesses and movement, threatening economic recovery.

Gold futures were up 0.36 per cent or Rs 177 at Rs 49,040 per 10 grams. Silver futures gained 1.20 per cent or Rs 618 to Rs 51,980 per kg.

Gold prices in the national capital rose marginally to Rs 49,959 per 10 gram on Friday, according to HDFC Securities. Silver declined by Rs 352 to Rs 52,364 per kg. Globally, gold prices rose holding ground above the key $1,800/oz level, as a weaker dollar and worries over surging COVID-19 cases around the globe kept the safe-haven metal underpinned.

Spot gold was up 0.3 per cent at $1,803.80 per ounce by 0303 GMT. US gold futures rose 0.4 per cent to $1,809.10.

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

Gold is used as a safe investment during times of political and financial uncertainty.

Indicative of investor sentiment, speculators increased their bullish positions in COMEX gold and silver contracts in the week to July 7, the US Commodity Futures Trading Commission said on Friday.

Elsewhere, palladium gained 0.9 per cent to $1,987.77 per ounce, platinum rose 2.4 per cent to $834.05 and silver climbed 1 per cent to $18.86.