Gold and silver prices in India fell today as the US elections headed to a tight end. On MCX, December gold futures fell 0.5% to ₹51,328 per 10 grams, while silver rates fell 1.5% to ₹61,773 per kg. In the previous session, gold and silver futures had posted gains of more than 1% each. In global markets, gold prices moved lower today amid a stronger US dollar.
The dollar strengthened after early results showed that the outcome of the US presidential election could be closer than the polls suggested. Gold was at $ 1,894.33 an ounce, down 0.8%.
Among other precious metals, silver fell 0.2% to $ 24.11 an ounce. Platinum fell 0.5% to $ 861.90 and palladium fell 1.1% to $ 2,256.88.
Likewise, the US dollar reversed initial losses and was up 0.45% against a basket of currencies at 94.071.
Global stock markets rocked today as the results of the US presidential election showed an agonizingly close race with no clear winner still in sight.
Gold investors are still waiting for the outcome of this week’s Federal Reserve and Bank of England meetings, which are expected to at least give a thumbs up to further stimulus.
The Reserve Bank of Australia cut interest rates to almost zero on Tuesday and boosted its bond-buying program, adding to the unprecedented wave of cheap money flooding the global financial system.
Despite trading in a tight range for the past few weeks, gold prices in India have risen by around 30% so far this year, following a global rally driven by all this liquidity.
“Gold remains shaken amid the uncertain results of the US presidential elections and a volatile currency market. Meanwhile, hopes for more fiscal stimulus measures, escalating trade tensions between the US metal,” he says Hareesh V, Director of Commodity Research at Geojit.
On the technical side, prices break either way (London spot: $ 1840-1920 levels an ounce) and would suggest a new direction for the metal, he added.
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