On November 18, gold and silver prices in India decreased, tracking muted global cues. On Multi Commodity Exchange, today’s gold futures declined by 0.43%. It settled at ₹50,546 per 10 gram, extending losses to the third day. Meanwhile, silver futures on Multi Commodity Exchange also dropped 0.6% and touched ₹62,875 per kg. Moreover, in the prior week, gold prices in India had retreated ₹1200 per 10 gram as the coronavirus vaccine’s hope rose global risk sentiment and put pressure on the gold. If we compare the August price of gold, the yellow metal dropped ₹6,000, as in August, gold stood at ₹56,200.
In global markets, the yellow metal rated declined today as covid-19 infections resumed to boost in most parts of the world. Gold eased 0.2% and touched 1.876.85 an ounce while other precious metals, such as platinum, stood at $925.60. Significantly, the white metal was flat at $24.47 per ounce.
Furthermore, Asian stock markets were steady today after U.S. shares retreated overnight as investors weighed escalating coronavirus infections against enthusiasm over a vaccine. The greenback increased against major peers.
Besides, Kodak Securities made a statement according to which the yellow metal is trying to boost momentum to break past the $1900/oz level. They announced that Mixed factors had held gold bound in a range, and this trend could resume in the near term. Declining gold prices are indications of improvement on the vaccine for coronavirus pandemic.
Additionally, a biotech company, Moderna Inc., announced this week that its vaccine has 94.54% efficacy in preventing coronavirus. Besides, that followed similar positive developments from Pfizer on its vaccination last week.
After Moderna’s vaccine announcement, the impact of gold was muted
After Moderna Inc. announced its vaccine, the impact on the precious metal had been muted. The reason for it is that the covid-19 pandemic is worsening every day. Thus, forcing governments to impose tighter restrictions.
However, the optimism of U.S. stimulus also helped gold at lower levels. On Tuesday, Jerome Powell, U.S. Federal Reserve Chair, announced that it was not time to shut down emergency programs directed at battling the pandemic’s economic fallout. He says that the economy needs much time to recover.
Additionally, the dollar index increased to 92.450, which made gold costlier for other currencies’ holders.
According to Kodak Securities, the yellow metal may remain choppy amid mixed factors. However, they maintain buy on dips view as increasing virus infections may hold market expectations high, and central bank and government may offer additional stimulus measures in order to improve their economies.
