Gold prices remain choppy, silver surges ₹1,500 in a day

Gold prices in India remained choppy throughout the week and ended moderately higher on Friday. June gold futures on MCX rose 0.27% to ₹46,530 per 10 gram. However, silver prices surged on Friday with July futures on MCX rising 3.27% or ₹1,538 to ₹50,096 per kg, tracking a surge in global rates. Domestic gold prices include 12.5% import tax and 3% GST.

In India, gold demand remained muted this week due to high local prices while while most jewellery shops remained shuttered due to the corona virus lockdown. The Home Ministry has announced a phased exit from lockdown from tomorrow though some states have extended the lockdown with some relaxations.

Dealers offered discounts of up to $25 an ounce over official domestic prices, Reuters reported.

Analysts say that gold prices may continue to witness choppy trade as support from US-China tensions is countered by hopes of global economic recovery.

In global markets, spot gold climbed 0.9% to $1,734.70 per ounce, supported by US-China tensions, while silver gained 2.5% to $17.86 an ounce. Silver prices were up 18.8% for the month, the biggest gain since January 2012.

Analysts attributed the sharp rise in silver prices to optimism about global efforts to restart economies that could boost demand for the metal, which had slipped to an all-time low relative to gold during the crisis.

*image source from Google

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