New delhi, may 26
Gold and silver prices gained on Tuesday as hostilities between the United States and China rose, forcing investors to seek refuge in the safe-haven metal.
Gold June futures on the Multi Commodity Exchange (MCX) were up 0.28% or Rs 132 at Rs 47,105 per 10 grams. Silver futures were trading 1.39% higher or Rs 670 to Rs 48,927 per kg.International gold ticked higher on Tuesday as brewing Sino-US tensions over Hong Kong lifted demand for the safe-haven metal, though easing coronavirus-induced lockdown restrictions supported equities and capped bullion’s gains.Spot gold rose 0.2% to $1,732.38 per ounce by 0241 GMT. US gold futures were down 0.1% to $1,733.50.“The key supportive factor for the (gold) market is rising tensions between China and the US; and if we see a further escalation, we would see another move higher in gold,” ING analyst Warren Patterson was quoted as saying by Reuters. China’s foreign ministry office in Hong Kong and the city’s security chief defended proposed security laws by describing some acts in mass pro-democracy protests last year as terrorism.White House National Security Adviser Robert O’Brien said on Sunday the proposed legislation could lead to US sanctions on Hong Kong and China and threaten the city’s status as a financial hub.Gold is seen as a safe-haven asset during political and economic uncertainties.
One of the factors keeping a cap on gold prices is the easing of lockdown restrictions, said Patterson and added that “people are getting more positive on recovery.”
