Gold prices in India went up on Tuesday, after suffering a big fall in Monday’s session, tracking international spot prices supported by strained ties between the US and China and a dismal global economic outlook.
On the Multi Commodity Exchange (MCX), June gold contracts were trading higher by 0.48% to Rs 46,880 per 10 gram at 9:58am. Silver futures were trading 0.13% higher at Rs 47,760 per kg.
Gold had hit a record high of Rs 47,980 on Monday but could not sustain and ended 1.5% or Rs 705 lower.
Globally, the yellow metal’s prices inched up on Tuesday, supported by the tension in Sino-US relations and a dismal global economic outlook, although positive news from an early-stage trial for a coronavirus vaccine spurred some risk appetite and capped the metal’s gains.
Spot gold was up 0.2% at $1,735.04 per ounce by 0042 GMT. US gold futures gained 0.2% to $1,737.10.
On Monday, the metal fell back from a more than seven-year high to settle 0.5% lower, as stocks and oil surged after drugmaker Moderna said its experimental vaccine showed promising results in an early-stage trial.
Gold has risen about 14% this year as central banks rolled out a wave of rate cuts and other stimulus to limit the economic damage from the coronavirus pandemic.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.