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.


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.