Gold prices Today: Gold and silver prices surged today in Indian markets tracking firm international prices. On MCX, February gold futures jumped 1.4% to one-month high of ₹51,009 per 10 gram while silver futures surged 5.4% or ₹3,600 to ₹71549 per kg. In the previous session, gold futures had edged 0.17% after three days of up-move lower while had fallen 0.6%.
Gold price Today Jump to one-month High, Silver Rates Surge ₹3,600
In global markets, gold rates jumped after top US lawmakers agreed on a $900 billion COVID-19 economic relief package after months of battling and posturing. House leaders informed lawmakers that they would vote on the legislation on Monday, and the Senate was likely to vote on Monday, too.
Spot gold rose 1.1% to $1,900.57 per ounce. Silver rose 4.5% to $26.93 an ounce, having hit its highest since Sept. 18 at $27.02 earlier in the session.
However, a stronger US dollar capped further gains in gold. The dollar climbed as the worsening pandemic and lack of progress on Brexit trade talks sapped risk appetite despite an agreement on a US stimulus package.
Worsening coronavirus outbreaks also overshadowed news that U.S. lawmakers finally have a deal on more support for American families and businesses.
In Britain, the spread of a contagious form of the coronavirus has brought fresh limits on business and other activity. Other European governments are also stepping up measures to contain a resurgence of the pandemic.
Many countries have banned arrivals from the UK as the WHO called for stronger containment measures.
Physical gold in India was sold at a discount last week for the first time in six weeks as a rebound in domestic prices squeezed demand. Reuters reported that dealers were offering a discount of up to $1 an ounce over official domestic prices this week down from last week’s premium of $2.5. Gold prices in India include import tax and 3% GST.
Latest data show that gold imports into India fell 40% to $12.3 billion during April-November due to fall in demand in the wake of the COVID-19 pandemic. The imports, however, recorded a year-on-year growth of 2.6% in November to $3 billion. Silver imports during April-November 2020 too dipped 65.7% to about $752 million. The decline in gold and silver imports has helped in narrowing the country’s trade deficit.