Gold prices fell in Indian markets today as equity markets rallied across the world amid covid vaccine optimism. On MCX, February gold futures fell 0.6% to ₹49815 per 10 gram while silver tumbled 1.2% to ₹64,404 per kg.
Weighing on gold price is progress on vaccine front and weaker investor interest, say analysts. In the previous session, gold had ended 0.2% higher while silver had dipped 0.6%. In international markets, gold prices eased today as encouraging vaccine developments pushed investors towards riskier equities.
But hopes of more US stimulus kept gold supported at lower levels. Spot gold fell 0.3% to $1,865.46 per ounce. Among other precious metals, silver slipped 0.7% to $24.38 an ounce, while platinum rose 0.6% to $1,028.17 and palladium was up 0.1% to $2,311.87.
US Treasury Secretary Steven Mnuchin on Tuesday said he had presented Democrat House Speaker Nancy Pelosi with a new economic rescue package. The $916 billion plan is bigger than the $908 billion proposal put forward last week by a bipartisan group of lawmakers.
Gold, considered a hedge against inflation and currency debasement, has risen more than 25% this year in Indian markets, benefiting from near-zero interest rates and the risk of higher inflation likely to result from massive stimulus globally.
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