Gold and silver prices fell today on some profit-taking after the recent upmove. On MCX, February gold futures dipped 0.24% to ₹50,270 per 10 gram, snapping a three-day gain, while silver rates declined 0.6% to ₹67,882 per kg. In the previous session, gold had surged 1.5% or ₹750 to ₹50,346 per 10 gram while silver jumped 3.5% or ₹2,300 per kg amid a slide in US dollar. Analysts attribute the recent bounce in gold prices to progress in US stimulus talks and a weaker US dollar.
MCX gold has support at ₹49620 and any dip below that level could trigger some correction, Geojit Financial said in a note.
Gold traders kept a close watch on the progress on stimulus talks. A bipartisan U.S. stimulus deal “appears to be close at hand,” Senate Majority Leader Mitch McConnell said, but will probably require work over the weekend to get through Congress.
“Gold has bounced back sharply from recent lows and remains supported by stimulus expectations however we do not expect a sustained rise as Fed’s stance was largely anticipated and US leaders are still to finalize a stimulus deal and ETF investors are still not buying,” Kotak Securities said in a note.
Also supporting gold price is rising virus cases which has forced authorities to impose tighter restrictions.
In global markets, spot gold fell today after the recent bounce. Spot gold fell 0.2% to $1,881.65 per ounce but was up 2.3% so far this week. Silver also declined 1% while platinum dropped 0.8% to $1,035.91.
The US is likely to get another covid vaccine soon after after a panel of experts recommended emergency use approval of Moderna shot, advice that the country’s Food and Drug Administration is likely to act on.
The European Union is under massive pressure to approve potential vaccines after Britain and the United States began rolling out a drug produced by Pfizer and BioNtech.
However, weighing on gold prices is ETF outflows which shows weaker investor interest. Holdings in the SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund or gold ETF, fell 0.2% to 1,167.82 tonnes on Thursday. (With Agency Inputs)
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