On Monday, October 19, gold prices traded flat for the second straight session in the Indian commodity market. The gold traded up the key psychological level of Rs 50,000.
Moreover, on Multi Commodity Exchange, gold prices traded flat at Rs 50,605 today per 10 grams. While in previous, the yellow metal stood at Rs 50,547 per 10 grams.
Meanwhile, Silver September Futures decreased by Rs 112 and settled at Rs 61,564 per kg today. The expensive metal steadied on expectations of a Covid-19 stimulus bill in the U.S. before the presidential election.
Globally, the yellow metal traded in range-bound trade on Monday on hopes of a new U.S. fiscal stimulus package before elections; however, significant gains were restricted due to the strong greenback. Meanwhile, Spot gold gained 0.1% and settled at $1,900.79 per ounce. While Comex gold traded flat at $1,900 per ounce for the second session. The white metal declined by 0.6% and touched $24.15 per ounce.
The yellow metal has advanced nearly 26% this year
Moreover, the yellow metal has advanced nearly 26% this year. Leading central bankers have called for refreshed government spending to rebound significant economies from the Coronavirus recession. Additionally, the recent spike in coronavirus cases across major economies added to the uncertainty over the global economic recovery.
The USD held on to gains helped by political uncertainty around the U.S. elections, as investors turned optimistic about the coronavirus vaccine.
Last week, the yellow metal’s prices decreased as hopes for U.S. stimulus happening before the November U.S. elections faded, impacting the gold’s attractiveness.
According to Hareesh V, Head of Commodity Research at Geojit Financial Services, weak USD, expectations of more fiscal stimulus measures from the U.S. before the election, and unsolved US-China tensions continue to support gold. However, easing safe-haven demand amid optimism of global economic return would dent significant rallies in the commodity.
Hareesh V added that if the support of $1840 remains undisturbed, expect rallies to continue, but it is required to touch $1920 to continue significant rallies. An unexpected fall under $1820 would extend further selling pressure.
According to Anuj Gupta, Angel Broking’s Commodities and Currencies Research, spot gold prices decreased by 1.6%. Moreover, spot silver fell 3.8% last week. The silver settled at $24.2 per ounce as the strengthening of the U.S. currency made gold less appealing for holders of other currencies.
According to him, gold prices are likely to trade higher on Multi Commodity Exchange in today’s session.