Amid the falling price of bullion, the third tranche of gold bonds of this fiscal (2020-21) has opened for subscription on Monday.
New Delhi, June 8: Domestic gold prices rose on Monday after witnessing a sharp decline from the previous session. On MCX, August gold futures were up 0.4 per cent to ₹45,870 while silver also moved higher in tandem with the bullion prices. MCX July silver futures were up 0.88 per cent to ₹47,766 per kg. ALSO READ: https://news.abplive.com/news/world/sensex-surges-546-points-nifty-breaches-10300-level-reliance-industries-axis-bank-supports-the-rally-1254446
The demand for gold remains weak even as shops have opened up after more than two months of nationwide lockdown. The gold prices rose in the wake of a rising number of Covid-19 cases. The total number of coronavirus patients in the country touched over 2.5 lakh while fatalities climbed to 7,000 levels.
Gold is considered as a safe-haven asset in times of political and economic upheaval.
Amid the falling price of bullion, the third tranche of gold bonds of this fiscal (2020-21) has opened for subscription on Monday. The issue will close on June 12. The issue price has been fixed at ₹4,677 per gram and retail investors making payment through digital mode will get a discount of ₹50 per gram.
The scheme was launched in 2015 in an aim to curb the demand for physical gold and perhaps transfer a part of the domestic savings – used in buying gold – into financial savings.
Globally, rates have slipped after the US has reported unexpected employment data rising hopes of economic recovery. This has taken away the sheen from the safe-haven asset. Spot gold was down 0.2 per cent at $1,682.57 per ounce, following a 2.4 per cent drop in the previous week. It is the third continuous weekly drop. Other precious metals including silver was up 0.5 per cent to $17.45, while platinum declined 1.7 per cent to $821.78, according to Mint report.
The traders will now closely watch on the US central bank’s policy meeting on Wednesday. The US economy unexpectedly added jobs in May after it recorded losses in the prior month, which bolstered equity markets.
Meanwhile, the holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund slipped 0.4 per cent to 1,128.11 tonnes on Friday.