Gold and silver slipped in early trade on Tuesday, thanks to a fresh bout of profit booking after a steep rally even as COVID-19 rampages throughout India, disrupting lives.
India has reported over 22.7 lakh coronavirus cases by now with more than 45,300 deaths. Gold tends to gain when interest rates are low and political and economic uncertainties are high.
Gold futures on MCX NSE 0.70 % were down 0.56 per cent or Rs 306 at Rs 54,640 per 10 grams–hovering a tad below record highs. Silver futures shed 0.77 per cent or Rs 578 to Rs 74,816 per kg.
Globally, gold fell as the dollar firmed after Beijing slapped sanctions on U.S. officials in the latest flare-up in tensions between Washington and Beijing, with investors also keeping a close watch on negotiations over a US stimulus plan.
Gold remains underpinned, analysts said, with prices up more than 33 per cent so far this year mainly due to unprecedented stimulus rolled out by governments and central banks, as it’s widely viewed as a hedge against inflation and currency debasement.