Sovereign gold bonds open for subscription today; all you need to know

Sovereign gold bonds are issued by RBI on behalf of the government. It provides an annual interest rate of 2.5 percent and has a maturity period of eight years with an exit option after the fifth year.

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Gold, which has been among the top-performing asset classes of calendar 2020, is facing volatility after forming a record high earlier this month. On a year-to-date basis, the prices of the yellow metal have surged over 27 percent.

Gold prices were up in India on August 31 tracking positive cues in the international spot prices where the precious metal was trading near its highest level in nearly two weeks as a weaker dollar and the US Federal Reserve’s new policy framework boosted demand.

Also Read: Gold price today: Yellow metal holds Rs 51,500, silver jumps 2%

On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.2 percent at Rs 51,560 per 10 gram at 09:20 hours. September silver futures were trading at Rs 67,300 per kg, up 2 percent.

In the international market, spot gold was trading near $1,971.68 per ounce, after hitting its highest since August 19 at $1,976 in early Asian trade. However, gold is down nearly 0.2 percent, so far, this month.

Experts are of the view that gold and silver prices are likely to remain volatile but weakness in the dollar index could support the prices. Support is placed at Rs 51,100-50,800.