Gold rate rises to Rs 51,560 on firm global trend

NEW DELHI: Gold and silver rate gained in early trade on Friday, in line with global market, as high unemployment in the US kept traders worried about the economy, boosting the demand for safe haven counters.

The weekly jobless claims report from the US Labor Department, the most timely data on the economy’s health, showed nearly 30 million people were on unemployment benefits at the end of August, laying bare the continuing economic and human devastation from the Covid-19 crisis.

Gold futures on MCX were up 0.22 per cent or Rs 115 at Rs 51,568 per 10 grams. Silver futures advanced 0.24 per cent or Rs 163 to Rs 68,305 per kg.

Gold prices fell by Rs 608 to Rs 52,463 per 10 grams in the national capital on Thursday, in tandem with weak international trends, according to HDFC Securities. Silver also failed to attract investors as it declined Rs 1,214 to Rs 69,242 per kg.

Globally, gold prices rose as the dollar slipped, while lacklustre U.S. employment data and vows by major central banks to roll out further stimulus if required to revive their Covid-hit economies also bolstered the metal’s appeal.

Spot gold climbed 0.4 per cent to $1,951.13 per ounce by 0125 GMT, having fallen to a one-week low in the previous session. US gold futures were up 0.6 per cent at $1,960.80.

The dollar index was down 0.1 per cent against its rivals, making gold more attractive for buyers holding other currencies.

Swiss exports of gold to the United States all but halted in August while shipments to China and India rose, customs data showed, suggesting a big transfer of bullion to New York that followed the pandemic has run its course.

Silver fell 0.5 per cent to $26.97 per ounce, platinum dipped 0.4 per cent to $936.69 and palladium slipped 0.8 per cent to $2,316.58.