Gold rate jumps on US-China tensions, rising virus cases

Gold and silver edged higher on Friday after Sino-US tensions over Hong Kong escalated further while India continued to report an increasing number of new cases forcing investors to seek safe havens.

China approved a decision to go forward with national security legislation for Hong Kong, which could erode the city’s freedom and jeopardise its role as a financial hub. India said it has recorded a total 1,65,799 cases while 4,706 people have died.

Gold futures were up 0.33 per cent or Rs 152 at Rs 46,557 per 10 grams. Silver futures added 0.34 per cent or Rs 167 to Rs 48,725 per kg.

Spot gold markets remained shut due to lockdown in the country to check the spread of coronavirus, according to HDFC Securities.

US President Trump’s top economic adviser warned that Hong Kong, which has enjoyed special privileges, may now need to be treated like China when it comes to trade and other financial matters.

Globally, gold prices ticked up on Friday as the Sino-U.S. rift deepened over further moves by Beijing to impose a security law on Hong Kong, lifting the allure of safe havens amid market uncertainties caused by the pandemic.

Spot gold was up 0.1 per cent at $1,719.63 per ounce, as of 1249 GMT. U.S. gold futures rose 0.4 per cent to $1,734.60.

Palladium was flat at $1,930.67 per ounce, platinum declined 0.9 per cent to $830.81, and silver fell 0.3 per cent to $17.38.

Courtesy: Economic Times.