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Gold rates jumps to near 4-month high, silver sees a rise too

By Saima Siddiqui 
Updated Date
Gold rates jumps to near 4-month high, silver sees a rise too

New Delhi: Both the precious metals – Gold and silver – witnessed a price hike on May 24, edging higher in Indian markets. On MCX, gold price rose 0.24% to near four-month high of ₹48519 while silver rates jumped 0.5% to ₹71,440 per kg.

Also Read :- Gold prices fall sharply for 2nd consecutive day, silver rates tumble too

In the previous session gold had declined 0.22% while silver had slumped 1.7%. In international markets, gold inched higher to near 4-month high as a slide in cryptocurrencies further lifted the safe-haven metal’s appeal.

The precious metal was also supported by a weaker US dollar and expectations of growing inflationary pressure. Spot gold was up 0.2% at $1,883.21 per ounce. Among other precious metals, silver gained 0.4% to $27.64 while platinum climbed 0.6% to $1,173.03.

Inflows into gold-backed exchange-traded fund or gold ETF also supported the precious metal. The holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, rose 0.6% to 1042.92 tonnes on Friday.

Amid China’s efforts to efforts to crack down on bitcoin mining and trading, the cryptocurrency fell sharply over the weekend. It is now down nearly 50% from the year’s high.

Also Read :- Gold price drops, experts call it a 'golden opportunity' for buyers

Back in India, the second tranche of sovereign gold bonds for this fiscal opened for subscription today. The Reserve Bank of India has fixed issue price at ₹4,842 per gram. The government has decided to issue the bonds in six tranches from May 2021 to September 2021.

Investors who apply online and make payment online get a discount of ₹50 per 10 gram. For such investors, the issue price of gold bond will be ₹4,792 per gram of gold.

“The price for the second tranche of Sovereign Gold Bond has been fixed at ₹4842/gram. Based on their risk profile investors should look at allocating 5-15% of their capital to gold. Sovereign Gold Bond is a better alternative to physical gold as there is no risk of theft, storage charge, and to top it up it comes with an interest-bearing coupon,” said Nish Bhatt, Founder & CEO, Millwood Kane International – an Investment consulting firm.

“Gold prices have been on an up move due to uncertainties created by the second wave of COVID-19 cases, concerns of rising inflation in the US, and a weaker US dollar. Gold prices have been trading near a 4-month high in the international market. The high volatility in cryptocurrencies has led to investors flocking back to gold for stability,” he added.

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