Gold and Silver

Gold is up nearly 24% this year, while silver boosted 49%

On December 31, gold and silver declined in Indian markets but are on track for substantial gains for the year. On Multi Commodity Exchange, gold futures fell by 0.08% and settled at Rs 50,097 per 10 gram. Silver futures dropped by 0.12% and touched Rs 68,531 per kg.

According to Kodak Securities, investors continue to access the impact of worsening virus situation globally in the face of vaccination rollout. Significantly, the United Kingdom became the first country to approve a vaccine made by Oxford University and AstraZeneca.

Globally, the yellow metal prices increased, helped by a weaker American currency. Moreover, gold for immediate delivery increased by 0.2% and settled at $1,897.67 an ounce.

Significantly, gold is up nearly 24% this year and balancing for its biggest gain in 10 years. Meanwhile, in India, gains have been higher, at 27% supported by the rupee’s depreciation against the greenback.

Among other precious metals, Platinum boosted by 0.1% and touched $1,066.91 while palladium climbed by 0.2% at $2,366.01.

According to Kotak securities, the yellow metal may witness choppy trade amid mixed factors and low participation around year-end. However, the price may remain supported by U.S. stimulus measures and increasing virus concerns.

Furthermore, the latest tranche of sovereign gold bonds currently open for subscription will close on January 1. The issue price per gram of gold has been fixed at Rs 5,000 by India’s Reserve Bank. Moreover, investors who apply online and make payment against the application through digital mode get a Rs 50 per gram discount.

Platinum has risen 11%; Palladium rose by 20% in 2020

Silver, often referred to as gold’s poor cousin, has boosted about 50% this year. According to Bloomberg, in global markets, spot silver today traded at $26.64 an ounce, up 49% this year. Meanwhile, palladium is on course for a fifth consecutive annual gain, increasing over 20% in 2020. Platinum has risen 11%.

As we already mention, precious metals have also logged substantial gains in 2020. In August, the yellow metal reached a new high of Rs 56,200 per 10 gram while silver increased to nearly Rs 80,000 per 10 gram as investors sought haven assets amid the epidemic.

Significantly, unprecedented waves of stimulus supported the rise, which fanned concerns of currency debasement. Meanwhile, holding in gold-backed exchange-traded funds set an all-time high in October.

According to Geojit Financial, recovery uptick in the white metal may continue while global prices stay above $25.50. MCX silver February futures have resistance at Rs 70,180 while support at Rs 66,200.

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