Gold prices slip as risk appetite rises with reopening of economy

NEW DELHI: Gold and silver prices slipped on Monday as most parts of India returned to near-normalcy, which raised hopes of economic recovery and increased risk appetite of investors.

Businesses and citizens in less affected areas will have more freedom in movement. Offices and markets will also function normally. Meanwhile, the total number of coronavirus cases rose sharply to 46,433 with 1,568 deaths.

Gold futures were down 0.76 per cent or Rs 347 at Rs 45,460 per 10 grams. Silver futures slipped 0.24 per cent or Rs 101 to Rs 41,143 per kg.




Spot gold markets remained shut due to the lockdown to prevent the spread of Covid-19, according to HDFC Securities.

Globally, gold prices slipped as risk sentiment was lifted by easing coronavirus restrictions while brewing tensions between the United States and China over the outbreak kept the safe-haven metal near the key $1,700 per ounce level.

Spot gold fell 0.1 per cent to $1,699.56 per ounce by 0133 GMT. US gold futures were down 0.5 per cent to $1,705.50 per ounce.

Two of the world's biggest gold refiners, Valcambi and Argor-Heraeus, are restoring almost all operations after Switzerland relaxed lockdown measures, they said on Monday.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.4 per cent to 1,071.71 tonnes on Monday from 1,067.90 tonnes on Friday.

Palladium gained 0.5 per cent to $1,857.50 per ounce.