Gold and silver futures prices rose today in India, recovering from a sharp fall in the previous session. On MCX, gold futures rose 0.54 per cent to Rs 50,781 per 10 grams while silver futures rose 0.23 per cent to Rs 69,580 per kg. In the previous session, gold slipped by Rs 1230 per 10 grams, while silver declined by Rs 1,700 per kg.
Price in the global market
Today, gold prices have increased after the sharp decline in the global market in the previous session. Investors hope that a Democratic victory in the US Senate race will help more fiscal. Gold spot rose 0.2 percent to $ 1,922.81 an ounce. Gold had lost 2.5 percent in the previous session.
Price of other precious metals
Among other precious metals, silver lost 0.4 percent to $ 27.19 an ounce while platinum remained flat at $ 1,101.33. Palladium closed down 0.1 percent at $ 2,437.23. The US central bank at the onset of the Coronavirus epidemic in March almost doubled its benchmark interest rate.
Gold increased by 25 percent last year, silver rose by 50 percent
Fiscal measures by central banks and governments around the world to reduce the effects of the coronavirus had raised gold prices by more than 25 percent last year while silver rose nearly 50 percent. Gold is seen as a hedge against inflation and currency depreciation. Gold in India is well below its August high, that is, Rs 56,200 per 10 grams.
India is the second-largest buyer of gold
Gold imports to India increased to $ 3.7 billion in August from $ 1.36 billion in the same month last year. India is the second-largest buyer of gold after China. Gold attracts 12.5 percent import duty and three percent GST on gold in India.