According to the latest news, gold prices declined today in the Indian market after significant gains in the previous session. On Multi Commodity Exchange December gold futures dropped 0.28% and settled at ₹51,910 per 10 gram, while silver futures rose by 0.32% and touched ₹64,460 per kg.
After a sharp decline in recent weeks, the yellow metal recovered in the previous session as uncertainty over the U.S. election results hopes as well as boosting Covid-19 cases across the world rose demand for the haven asset. Moreover, in the previous session, gold prices on Multi Commodity exchange gained ₹1,257 per 10 gram while silver advanced ₹2,700 per kg, following a global rally this week.
According to SMC Global, bullion counter may resume trading with bullish bias where gold may hit ₹52,400 and taking support near ₹51,700. At the same time, silver may trade with higher volatility and reach ₹65,200, taking support near ₹63,700.
Gold declined on October 6 in global markets which weighed down a stronger U.S. dollar. Furthermore, spot gold declined by 0.4% and settled at $1,940.86 per ounce while in the previous session, it gained 2.4% and was the largest one-day gain during seven months.
Among other precious metals, the white metal dropped 1,6% and settled at $$24,93 an ounce, while platinum fell 0.7% and touched $886,63.
Democrat Joe Biden is expected to winning the White House, the final outcome of U.S. election joined on a handful of battleground states, and the chance of a contested result still remains.
Additionally, Investors weighed the weighed prospects for additional stimulus as current President Donald Trump questioned the honesty of the election, complaining polls had overstated Joe Biden’s lead in various battleground states.
Dollar index made gold less attractive
Except for that, the dollar index gained 0.08%, which made gold less appealing for holders of other currency.
Besides, the Federal Reserve kept its loose monetary policy intact on October 5 and vowed once again to do whatever it can in the following few months to support a U.S. economic recovery. The Bank of England has stated a raise in its already massive bond-buying stimulus by 150 billion pounds, which equals $195 billion, amid fresh Covid-19 lockdowns and the looming risk of Brexit.
The yellow metal prices increased by more than 31% in India during this year, tracking a global rally amid unusual stimulus provided by central banks and governments to cushion the economic harm of Covid-19 pandemic.