Gold prices fell today in Indian markets after posting huge gains in the previous session. On MCX, December gold futures fell 0.28% to ₹51,910 per 10 grams, while silver futures were up 0.32% to ₹64,460 per kg. After holding in a tight range in recent weeks, gold exploded in the previous session as uncertainty over hopes for US election results amid a surge in coronavirus infections around the world fueled the demand for the safe haven asset. In the previous session, gold prices on MCX had risen. ₹1,257 for 10 grams and silver ₹2,700 per kg, following a global rally this week.
“The bullion counter may continue to trade on a bullish bias where gold can test ₹52,400 and receiving close support ₹51,700 while silver can trade with higher volatility where you can test ₹65,200 and receiving close support ₹63,700, “SMC Global said in a report.
The precious metal fell on global markets today, weighed down by a stronger US dollar. Spot gold fell 0.4% to $ 1,940.86 an ounce after jumping 2.4% in the previous session, the biggest one-day gain in seven months. Among other precious metals, silver fell 1.6% to $ 24.93 an ounce, while platinum was down 0.7% to $ 886.63.
Although Joe Biden came a little closer to winning the White House, the final outcome of the US election depended on a handful of states on the battlefield, and the prospect of a controversial outcome still remains. Investors weighed the prospects for further stimulus when President Donald Trump questioned the credibility of the election and complained that polls had exaggerated Joe Biden’s leadership in many battle states.
The dollar index rose 0.08% today, making gold less attractive to other currency holders.
Overnight, the Federal Reserve kept its loose monetary policy intact on Thursday and pledged once again to do everything possible in the coming months to sustain America’s economic recovery. The Bank of England has announced an increase in its already huge stimulus for buying bonds by 150 billion pounds ($ 195 billion) amid new lockdowns due to coronavirus and the looming risk of Brexit.
In India, gold prices have risen more than 31% so far this year, following a global rally amid unprecedented stimulus provided by central banks and governments to cushion the economic impact of the coronavirus.
(With contributions from the agency)
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