Tags: Commodity News, Gold
Gold and Silver

Gold priced decreased to 48,956, silver fell to 63,299

The United States started getting its first shipment of coronavirus vaccines. Hence, risk sentiment improved, and gold and silver prices decreased in the domestic market on Monday.

On Multi Commodity Exchange, gold futures declined by 0.75% and settled at Rs 48,956 in their third fall in four days. Meanwhile, silver futures on Multi Commodity Exchange dropped by 0.68% and touched Rs 63,299 per kg. Significantly, in the previous session, gold had increased by 0.4% while silver climbed 0.1%.

The first shipment of the COVID-19 vaccine started on Sunday after a U.S. regulator approved Pfizer Inc. and BioNTech Se’s vaccine. Meanwhile, the text of a $908 billion bipartisan relief plan will be announced on Monday. It will be divided into two packages in a bid to win approval.

Meanwhile, in the spot market, the yellow metal prices fell by Rs 102 and touched Rs 48,594 per 10 grams in the national capital on Friday. The white metal eased marginally by Rs 16 to Rs 62,734 per kg.

In the global markets, gold fell on Monday as the rollout of COVID-19 vaccines in the U.S. increased risk sentiment. It offset support from hopes for more U.S. economic stimulus and a weaker greenback.

Additionally, most Asian equity markets were higher, while Dow futures also boosted. Spot gold fell 0.2% to $1,834.94 per ounce, while U.S. gold futures dropped 0.2% and touched $1,840.70.

Silver dropped a little at $23.90 an ounce, among other precious metals. Platinum advanced 0.6% and settled at $1,015.03. Palladium boosted 0.4% to $2,327.57.

Moreover, the United Kingdom and the European Union have agreed to extend talks on a post-Brexit trade deal past a self-imposed deadline. Boris Jonson, U.K. Prime Minister, and Ursula von der Leyen, E.U. chief, announced that they would exceed expectations to find common ground in long-running talks.

SPDR’s Gold Trust declined by 0.32%

ETF investors stayed on the sidelines as gold struggled for direction. Holdings in the world’s largest gold-backed exchange-traded fund, SPDR’s Gold Trust, eased by 0.32% and settled at 1,175.99 tonnes. In contrast, on Friday, it stood at 1,179.78 tonnes.

Gold traders monitor the Federal Reserve’s final meeting of the year, with markets widely anticipating new guidance on its asset-purchase program. Significantly, the policy-setting Federal Open Market Committee (FOMC) will open its last meeting of 2020 on Tuesday.

According to Kotak Securities, the yellow metal may see choppy trade amid mixed factors. Still, a sharp increase is unlikely amid vaccine optimism and delay in U.S. stimulus.

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