Gold prices today rise on US data, Covid cases

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NEW DELHI: Gold and silver futures for December delivery rose on Friday amid weak US jobs data and concerns over rising Covid cases.

Gold futures on MCX advanced 0.12 per cent to Rs 50,050 per 10 grams. Gold prices are off recent highs of Rs 56,379. Silver futures for December delivery were trading 0.44 per cent higher at Rs 61,783 per kg.

SMC Global said gold has supports at Rs 49,700 and resistance near Rs 50,200. It believes silver can test Rs 60,800 and face resistance near Rs 61,900.

New filings for unemployment benefits in the United States climbed to 7,42,000 last week, the US Labor Department said Thursday, reversing their recent decline amid a surge in Covid-19 cases. The data also showed 3,20,237 people applying for benefits under a special program for workers who aren’t normally eligible, while the level of claims reported in the week ended November 7 was revised slightly upwards, agencies reported.

Agencies reported that the number of people hospitalised with Covid-19 in the United States has jumped nearly 50 per cent in the last 14 days, straining the nation’s healthcare system and forcing states to impose new restrictions to curb the alarming spread of the coronavirus.

Meanwhile, US Treasury Secretary Steven Mnuchin asked the Fed to return money earmarked under the March pandemic relief act for emergency lending to businesses, nonprofits and local governments, marking an end on December 31 to most of the crisis-response programs. All these developments have raised bullion’s safe haven appeal.

Globally, gold prices fell, weighed by uncertainty over more US stimulus measures. Spot gold fell 0.2% to $1,863.21 per ounce and was headed for the second week of declines.

U.S. gold futures were flat at $1,862.60.

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