Gold rate today advances as bleak US data sparks flight to safety

NEW DELHI: Gold and silver prices advanced on Friday, in-line with global markets as poor macro data weighed on sentiments. No sign of ease in tensions between the US and China also helped the cause of safe haven assets.

Data on Thursday showed the number of Americans filing a new claim for unemployment benefits rose unexpectedly back above the 1 million mark last week, a setback for a struggling US job market crippled by the coronavirus pandemic.

Gold futures on MCX were up 0.42 per cent or Rs 219 at Rs 52,370 per 10 grams. Silver futures gained 1.42 per cent or Rs 957 to Rs 68,552 per kg.

Gold prices plunged by Rs 1,492 to Rs 52,819 per 10 grams on Thursday in the national capital in line with sell-off in international prices of the precious metal, according to HDFC Securities. Silver also witnessed weak trend as it tanked Rs 1,476 to Rs 67,924 per kg.

Globally, gold prices rose after bleak US jobless claims data reinforced fears of a slower recovery from the coronavirus-induced economic crisis, denting the dollar and US Treasury yields.

Spot gold was up 0.2 per cent at $1,945.45 per ounce by 0236 GMT. Gold is up 0.2 per cent so far this week, having shed 4.5 per cent in the week to Aug. 14, its worst in five months. US gold futures rose 0.4 per cent to $1,953.80.

Meanwhile, the Trump administration declined to acknowledge any plans to meet with China over the Phase 1 trade deal after the commerce ministry in Beijing said bilateral talks would be held “in the coming days”.

Elsewhere, silver gained 0.3 per cent to $27.30 per ounce and was poised for a weekly rise of about 3.5 per cent

Platinum climbed 0.4 per cent to $921.12, while palladium eased 0.2 per cent to $2,177.88.