Gold prices see profit booking amid Sino-Indian tensions

NEW DELHI: Gold and silver witnessed profit booking in the early hours of trade on Wednesday even as coronavirus cases in India mounted and tensions escalated between India and China.

Total number of coronavirus patients in India reached over 3.5 lakh while fatalities climbed above 10,000 levels. Meanwhile, India reported the death of 20 soldiers in a violent face-off in Ladakh.

Gold futures were down 0.46 per cent or Rs 217 at Rs 47,350 per 10 grams. Silver futures shed 0.74 per cent or Rs 358 to Rs 47,972 per kg.

Gold in the national capital rose by Rs 761 to Rs 48,414 per 10 gram on Tuesday in-tandem with a spike in international prices of the precious metal and rupee depreciation, according to HDFC Securities. Silver also jumped Rs 1,308 to Rs 49,204 per kg.



Globally, gold prices held steady on Wednesday, as fears of a second wave of coronavirus infections offset optimism around a potential COVID-19 drug and a stronger U.S. dollar.

Spot gold was flat at $1,727.22 per ounce, as of 0054 GMT. US gold futures were steady at $1,737 per ounce.

Beijing reported new COVID-19 cases for the sixth day in the worst outbreak in the Chinese capital since early February, while new coronavirus infections hit record highs in six U.S. states on Tuesday.

Market participants are also keeping a close eye on escalating tensions globally, as Indian and Chinese troops clashed at their disputed border, while North Korea blew up an inter-Korean liaison office set up in a border town.

A cheap and widely used steroid called dexamethasone has become the first drug shown to be able to save the lives of COVID-19 patients in what scientists said is a "major breakthrough" in the coronavirus pandemic.

Palladium fell 0.5 per cent to $1,922.13 per ounce, while silver gained 0.4 per cent to $17.46, and platinum was mostly unchanged at $820.04.