Gold declined by 0.2% from record-high
Gold and silver in Indian markets continue to struggle as the precious metals dropped in global markets. On Multi commodity exchange, December gold futures decreased by 0.2% and settled at ₹50,860 per 10 gram while silver futures dropped by 0.5% and touched ₹61,978 per kg. Meanwhile, gold futures have ended flat while silver gained 0.6% in the previous session.
According to Geojit Financial Services, MCX gold prices are in a consolidation range with a lack of directive trades, and an increase up to ₹51,200 could lift prices higher. They also reported that if MCX gold holds the downside barrier of ₹61,000, it could lift higher to ₹62,900 and then to ₹63,400 regions. But decline under ₹61,000 may lift prices lower.
Globally, gold price was marginally lower today amid ebbing hopes of U.S. stimulus before the elections. A greenback also weighed on gold. Significantly, Spot gold eased 0.1% and touched $1,905.51 per ounce while the dollar index gained 0.22% against rivals, making bullion more expensive for holders of other currencies.
Except for that, silver dropped 1% to $24.30 per ounce while platinum dipped 0.1% and touched $878.15.
SPDR Gold Trust gained 0.23% and settled at 1,266.72 tonnes
Another essential thing is that ETF flows stayed volatile as investors were cautious ahead of the U.S. elections. On Tuesday, Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, boosted 0.23% to 1,266.72 tonnes.
Today, equities market were under pressure as concerns lingered about the intensifying virus’s impact on economic activity in some part of the world. Analysts said the new wave of virus infections and uncertainty over the U.S. vote imply equities face an unsteady several days.
Kodak Securities reported that supporting gold price is safe-haven buying amid boosting challenges to the global economy amid increasing virus cases, forcing countries to impose more restrictions threatening the nascent economic recovery.
After reached an all-time high of $56,200 in August, gold prices in India have lost momentum. Gold rates in India hold 12.5% import duty and 3% GST.
Remarkably, gold investors are also observing on EU-UK trade talks. Brexit negotiating teams have begun intense daily talks, and these are expected to resume as both sides push to finalize a deal in November. Additionally, the European Central Bank and Bank of Japan have monetary policy decisions tomorrow, while the first reading of U.S. Q3 GDP Thursday is also scheduled.
Kodak Securities claims that the yellow metal may resume seeing choppy trade as uncertainty relating to U.S. stimulus may keep the greenback and U.S. equity market directionless. They say that increasing global economic challenges may boost gold’s safe-haven appeal.
