Gold, Silver Prices Rise On Strong Safe Haven Demand

Gold, Silver Price Today: Prices of gold futures for delivery in June rose as much as 0.82 per cent to hit an intraday high of Rs 48,070 on the Multi Commodity Exchange. In the spot market, 24 carat or fine gold was priced at Rs 47,776 per 10 grams, 22 carat gold was sold at Rs 46,130, 18 carat gold was priced at Rs 38,210 and 14 carat gold was sold at Rs 31,760, according to India Bullion and Jewellers Association (IBJA). Precious metals were witnessing buying interest on the back of safe haven demand amid geo-political tensions between Israel and Palestine and rising COVID cases.

In international markets, gold prices rose to their highest level in more than three months, as a dip in US Treasury yields and worries over surging COVID-19 cases in some Asian countries boosted demand for the safe-haven metal.

Spot gold was up 0.6 per cent at $1,853.50 per ounce by 10:49 am, hitting its highest since February 10. US gold futures jumped 0.9 per cent to $1,854.10.

"Treasury yields are falling and on the other hand, there seems to be fears about virus resurgence in Singapore, Taiwan and broader Asian-Pacific markets... driving up demand for safety," said Margaret Yang, a strategist at DailyFX.

Benchmark US 10-year Treasury yields slipped to their lowest in nearly a week, reducing the opportunity cost of holding non-interest bearing gold.

Back home, silver futures for delivery in July was witnessing buying interest as it moved above Rs 72,000 mark. Silver futures for July delivery advanced as much as 1.61 per cent to hit an intraday high of Rs 72,232. In spot market, silver was retailed at Rs 70,360 per kilogram. In international market, silver was up 0.9 per cent at $27.65 per ounce, after hitting a one-week high earlier in the day. Platinum gained 0.2 per cent to $1,228 and palladium edged 0.4 per cent higher to $2,904.72.