Gold and silver edged higher on the first day of the New Year though gains were moderate. On MCX, gold futures were up  (price of gold today) 0.09% to 50,198 per 10 gram while silver-edged 0.14% higher to 68,200. In Indian markets, both gold and silver had logged strong annual gain for the year 2020, rising 27% and about 50%, in tandem with a rally in global prices.

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Though prices have corrected significantly from record highs hit in August amid the rollout of covid vaccines, the dollar’s continued weakness had helped support gold into the year-end.

Among other precious metals, spot silver logged an annual gain of 48% amid optimism about industrial demand, while palladium had a fifth consecutive annual gain, with a rise of about 26% in 2020. Platinum climbed 11% for the year.

“Gold has been on a rise for the last few years and the rally exacerbated this year owing to COVID-19. Gold surged to a record high level of near $2080/ounce in August 2020. However, it witnessed a correction of about 15% reaching a low of near $1770/ounce in late November, before recovering back to currently traded $1880/ounce. The recent sell-off has been mainly due to profit-taking amid hopes of a COVID -19 vaccine and year-end position squaring," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.