On July 13, gold prices edged higher during the Asian session, tracking firm global prices. The gold futures prices were up about 0.35% after hitting record highs in the past week. Silver rates also gained 1.24%.
In the global markets, the spot gold price was up 0.1% to reach $1,800.71 per ounce. It managed to hold above the critical $1,800-per-ounce level as worries over increasing coronavirus cases throughout the world kept the haven metal underpinned. Geojit Financial Services said:
“If prices hold above $1770 expect a continuation of bullish bias in the counter. However, major resistance is seen at $1832 followed by $1882 levels. An unexpected drop below $1720 could negate the buying momentum and take prices lower.”
US-China tensions also have supported the rising prices of gold significantly. On July 10, President Donald Trump said that he was not considering negotiating a “Phase 2” trade deal with China. He insinuated that the relations between Beijing and Washington were quite sour due to the COVID-19 pandemic and many other issues.
Gold acts as a safe investment in times of financial and political uncertainty. In India, physical gold sold at a premium for the first time in 2020 due to the plummeting imports according to Reuters. On the other hand, platinum rose 1.3% to $824.80, palladium gained 0.5% to $1,979.96 per ounce, and silver climbed 0.5% to $18.75.
The gold exchange-traded funds or gold ETFs that operate in India enjoyed massive net inflows of over ₹3,500 crores in the first half of 2020. Investors have continued to hedge their exposure to the riskier assets amid the current health crisis. The gold prices will continue to surge until the geopolitical tensions and health crises are resolved.