Gold prices in India continued to decline for the third straight day. On Multi Commodity Exchange, gold futures fell by 0.02% and settled at Rs 49,131 per 10 gram. In the previous session, the yellow and white metals both witnessed a decline. Gold and silver had dipped by 0.5% and 0.9%, respectively.
On Multi Commodity Exchange, silver futures boosted by 0.4% and settled at Rs 66,885 per kg. According to Geojit Financial, the expectation of big U.S. fiscal measures supports gold prices on the downside. They added that the MCX gold futures price of Rs 49,800 need to be challenged for a major buying move.
Moreover, in global markets, gold prices rose on the expectation that U.S. lawmakers will soon pass the massive economic stimulus to recover the world’s largest economy. Furthermore, spot gold climbed 0.3% to $1,858.57 per ounce after falling 0.9% in the previous session. The yellow metal is a hedge against inflation and currency debasement, likely from a widespread stimulus.
SPDR Gold Trust declined by 0.07%
Additionally, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, slid by 0.07% and settled at 1,173.25 tonnes on Friday. Among other precious metals, silver today grew 0.9% and hit $25.61 an ounce, while platinum increased by 0.6% to $1,105.06.
Gold traders will be watching this week’s announcement of the U.S. Federal Reserve’s monetary policy committee’s decision on Wednesday. Moreover, U.S. fourth-quarter GDP, initial and jobless claims data will be published on Thursday.
Experts believe that investors can buy any dip towards Rs 49,000 for a target of Rs 49,400 per 10 gm. The yellow metal came under pressure due to recovery in the U.S dollar. However, stimulus beliefs will keep the sentiment alive.
Domestic gold and silver declined, tracking overseas prices. The U.S. dollar rose after three straight days of losses, and riskier currencies dropped after bleak non-U.S. economic data pushed investors towards the safe-haven appeal of the dollar.
Gold and silver prices traded on a weaker note in the international markets on January 22. February gold futures contracts were placed at $1,855.30 per troy ounce, and March silver stood at $25.55 per troy ounce
According to Kotak Securities, gold may witness choppy trade as market players expect more clarity on policy changes under the Biden administration. However, they added that the general bias might be on the upside as hopes of higher U.S. stimulus may keep the pressure on the greenback.