Gold and silver prices in India today fell below silenced global rates. On MCX, December gold futures were down 0.15% to ₹49.971 per 10 grams, spreading the losses to the third day. Silver futures on MCX fell 0.23% to ₹60,280 per kg. In the previous session, gold had fallen ₹500 per 10 grams, while silver was down 0.4%.
On world markets, gold prices were virtually unchanged today thanks to renewed hopes for a US stimulus. Spot gold was little changed at $ 1,886.69 an ounce, after rising as much as 1.1% in the prior session. The dollar index was stable against its rivals after falling overnight.
Among other precious metals, silver was stable at $ 23.83 an ounce, platinum was up 0.1% at $ 865.21, while palladium was stable at $ 2,352.18.
“Gold is supported at $ 1840, but it is required to break above $ 1920 to trigger big rallies on the counter. An unexpected drop below $ 1840 is a sign of weakness,” said Geojit Financial Services. Gold is looking for direction as market sentiments are tempered by growing confusion over the US stimulus package, he added.
The outlook for US stimulus improved after President Donald Trump wrote on Twitter that Congress should spend money for airlines, small businesses and $ 1,200 stimulus checks for individuals.
Gold tends to benefit from widespread stimulus measures as it is seen as a hedge against inflation and currency degradation.
Minutes from the US Federal Open Market Committee meeting on September 15-16 released on Wednesday showed that some US central bankers sought further discussion about the future of the US asset purchase program. Federal Reserve when they met last month, indicating that they would be open to alter or increase bond buying in the future.
Gold, which rose 30% during the first eight months of 2020, lost momentum in September as the dollar gained. Prices have been rockier this week.
Analysts say gold is likely to remain supported at lower levels ahead of the US elections and anticipate further stimulus. And potential gold headwinds include a slowdown in demand for the metal from central banks and a dollar that proved resilient in September. (With contributions from the agency)
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