India has reported over 19 lakh Covid-19 cases by now with nearly 40,000 deaths. Gold tends to gain when interest rates are low and political and economic uncertainties are high.
Gold futures on MCX were up 0.33 per cent or Rs 180 at Rs 54,731 per 10 grams–hovering at record highs. Silver futures dipped 0.25 per cent or Rs 53 to Rs 69,623 per kg.
Gold prices rose by Rs 97 to Rs 54,830 per 10 gram in the national capital on Tuesday amid rupee depreciation, according to HDFC Securities. Silver prices were almost flat at Rs 66,855 per kg.
Globally, safe-haven gold scaled an all-time peak, extending a record run above the $2,000 mark on a weaker dollar and bets for more stimulus measures to revive a pandemic-ravaged economy.
Spot gold hit a record high of $2,030.72 in early Asian trade around 0234 GMT, but later dipped to $2,014.41, with the slight retreat attributed to profit-taking. US gold futures rose 0.7 per cent to $2,032.30.
The rapid rise in Covid-19 cases has dented hopes of a swift U.S. economic rebound, sending the five-year Treasury yield to a record low, reducing the opportunity cost of holding non-interest bearing gold.
The U.S. dollar, considered an alternative safe-haven, fell 0.3 per cent against its rivals, making gold cheaper for holders of other currencies.
Silver dropped 0.7 per cent to $25.83 per ounce, platinum fell 0.9 per cent to $929.60 and palladium slipped 1.5 per cent to $2,107.38.