Rising gold prices see a mere drop

After the rapid spread of Coronavirus, the gold prices were seen zooming as this safe-haven asset was preferred during the time when the economies globally were busy implementing lockdowns.

US Federal Reserve kept its policy rates near zero and additionally, a worsening slump in Chinese export orders caused many to worry about the uncertain path ahead towards recovery. This resulted into the rising gold prices for the week. On Thursday, the announcement of a positive trial of an experimental drug intended to be used in the treatment of Coronavirus as well as increase in the crude oil prices caused the risk appetite of investors to grow larger. As a consequence, gold prices witnessed a drop by a mere 0.25 and were around Rs 47,280 for 10 grams of 24 carat gold as compared to the previous day’s price of Rs 47,400 for 10 grams of 24 carat gold. Since the beginning of the year, the shiny yellow metal has gained by 17.75 per cent from Rs 40,255 per 10 grams of 24 carat gold. With the announcement of stimulus packages globally and rebounding of oil prices to double digits, investor confidence can be seen improving, which can lead to a further drop in gold prices. The gold futures were up by 0.43 per cent or by Rs 198 to Rs 45,744 per 10 grams while, silver futures gained by 0.49 per cent or by Rs 209 to Rs 42,571 per kg.