Gold prices today struggle after sharp fall, silver rates drop

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Gold and silver prices in India today remained muted after a sharp fall in the previous session. On MCX, gold futures were up 0.16% to ₹50,845 per 10 gram while silver futures edged 0.1% lower to ₹62,551 per kg. In the previous session, gold had fallen 1.11% while silver had tumbled 1.5%. In global markets, gold prices were steady today as investors watched developments in Washington, where US lawmakers continue to work toward a stimulus package to bolster the economy.

Spot gold was up 0.1% to $1,905.65 an ounce after slipping more than 1% in the previous session. US House Speaker Nancy Pelosi on Thursday said negotiators were making progress in talks with the White House over a new coronavirus fiscal aid package and a deal could be reached “pretty soon”.

But White House economic adviser Larry Kudlow cautioned that there were still “significant policy differences” unlikely to be resolved before the election.

Among other precious metals, silver fell 0.8% to $24.56 per ounce, while platinum dropped 0.4% to $880.94.

A higher US dollar however capped the rise in gold. The dollar index was up 0.08% at 93.037, making gold costlier for holders of other currencies.

“All eyes are on US government as gap narrows on relief stimulus package. Whenever there is positive news on US stimulus, the dollar is falling and that ends up being a small positive for gold,” said Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers.

US President Donald Trump and former Vice President Joe Biden today debated topics including the response to Covid-19, immigration policy and health-care reform in their final US presidential debate.

ETF data shows muted investor interest. Holdings of the largest gold-backed exchange-traded-fund (ETF), the SPDR Gold Trust, fell 0.1% on Wednesday to 40.8 million ounces from Tuesday.

“Gold may witness choppy trade as market players react to development relating to US stimulus and Brexit negotiations and virus situation. We however maintain buy on dips view as increasing challenges to global economy may increase gold’s safe-haven appeal while US dollar may remain pressurized by concerns about the health of US economy,” Kotak Securities said in a note. (With Agency Inputs)

Raja Sekhar

Raja Sekhar

Raja Shekar is a professional Trader from 4 years who worked hard to break the "RAT RACE" in life for almost 4 years. He is also a Swing Trader, Mentor, YouTuber, and Trading Couch. He always looks to learn new things in trading and he loves to share the knowledge with other Traders.

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