New Delhi: Tracking softer global rates, gold and silver prices edged lower in Indian markets. On MCX, December gold futures were down 0.55% at ₹50,826 per 10 gram in their first decline in three days while silver futures fell 1.2% to ₹62,343 per kg.
Both gold and silver had edged higher in the previous session, rising 0.55% and 0.26% respectively. In global markets, gold prices edged lower but losses were capped amid concerns over rising coronavirus cases and a setback in covid-19 vaccine trial.
Spot gold slipped 0.1% to $1,919.51 per ounce. Among other precious metals, silver fell 0.4% to $25.02 per ounce while platinum was flat at $873.46. The dollar index was up 0.09% against rivals, making gold costlier for holders of other currencies. The recent gains in gold sparked some ETF-related buying. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.48% to 1,277.65 tonnes on Monday.
The uncertainty over US stimulus package continued. US President Donald Trump had on Sunday called on Congress to pass a stripped-down coronavirus relief bill. “With less than a month to Presidential election and lack of consensus, we believe that a comprehensive deal is unlikely. We may continue to see market reaction to comments from either side while choppiness may persist until a decision is taken,” Kotak Securities said in a note.
“Market players however expect that a deal may become easier post-election while a Democrat win could also result in bigger package. Expectations of a stimulus deal may continue to keep risk sentiment supported,” it added.
Record stimulus by governments and central banks have sparked big gains in gold this year. In India, gold had hit a record high of ₹56,200 in August. Back in India, the latest tranche of sovereign gold bonds opened for subscription on Monday and will close on Friday.
The issue price has been fixed at ₹5,051 per gram of gold. Investors who apply online and make payment against the application through digital mode get a discount of ₹50 per gram.
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