Gold gained Rs 44 to Rs 44,347 per 10 gram in the national capital on Thursday, supported by weaker rupee and overnight gain in global precious metal prices, according to HDFC Securities. It had closed at Rs 44,303 per 10 gram in the previous trade. Silver, however, dipped Rs 637 to Rs 64,110 per kg, from Rs 64,747 per kg in the previous trade.
The Indian rupee furthered its loss by another 7 paise to 72.62 against the dollar in early trade on Thursday amid growing concerns over surging coronavirus cases in India and some other parts of the world.
In the international market, Gold gained on Thursday as lower U.S. Treasury yields boosted the appeal of the non-yielding metal and eclipsed pressure from a strengthening dollar.
Spot gold rose 0.3% to $1,739.60 per ounce by 10:22 A.M EDT (1422 GMT). U.S. gold futures were up 0.3% at $1,739.30 per ounce. US benchmark Treasury yields continued their dip, translating into lower opportunity cost of holding bullion, after scaling one-year highs last week .
"I don't think it (gold) has much more downside and traders are looking for a bottom on the fact that short-term yields and the rise in the dollar are not sustainable," said Bob Haberkorn, senior market strategist, RJO Futures. The dollar hit a four-month high versus rivals. Also aiding gold, sentiment in wider financial markets
remained weak as investors grew wary following a new round of coronavirus restrictions in the euro zone.
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