Gold prices in India edged higher today after a tumble in the previous session. Renewed tension between the US and China hurt the global risk sentiment. On MCX, June gold futures rose 0.31 per cent to Rs 46,530 per 10 gram. In the previous session, gold had tumbled by about Rs 700 per 10 gram. Gold prices had earlier this month hit a record high of Rs 47,980 per 10 gram but has been choppy since then. Silver futures on MCX today edged 0.35 per cent lower to Rs 47,167 per kg, after a 3.5 per cent or about Rs 1,678 slump in the previous session.
In global markets, gold prices edged higher today amid renewed US-China tensions but a strong dollar capped the rise. Gold rose 0.1 per cent to $1,728.19 an ounce. China has announced plans to impose a national security law on Hong Kong, which threatened to further escalate tension between the US and China. This boosted the safe-haven appeal of gold as most Asian markets tumbled today.
Donald Trump warned the United States would react “very strongly” against China trying to gain more control over Hong Kong through new national security legislation. Tension between the two countries has heightened in recent weeks, as they exchange accusations on the handling of the coronavirus pandemic. Earlier this week, gold had soared to its highest since October 2012 at $1,764.55 but saw some profit-taking at higher levels.
‘Gold may witness choppy trade as global risk factors and hopes of stimulus measures may continue to support while resilience in equity markets may limit upside however general bias remains on upside,’ Kotak Securities said in a note.