Gold rates in India were muted today but silver saw some gains. On MCX, gold futures were down 0.04% to ₹50,677 per 10 gram – its third fall in four days – while silver rose 1% to ₹61,510 per kg. Though many analysts remain positive on gold on a longer-term basis on expectations of a large stimulus deluge from the US which ultimately should weaken the US dollar a steady dollar capped gold’s rise today. Gold is seen as a hedge against inflation and currency debasement.
MCX gold faces resistance at ₹50,960 while has support at ₹50,120, Geojit Financial Service said in a note.
In global markets, gold prices edged higher amid volatile trade as investors remained cautious ahead of US presidential election and a Federal Reserve policy meeting. Spot gold rose 0.2% to $1,882.00 per ounce. Among other precious metals, silver rose 1.2% to $23.92 per ounce and palladium gained 1.7% to $2,250.19, while platinum fell 0.4% to $845.26.
Developments over the weekend kept investors on edge ahead of the election. Polls continue to show Democrat Joe Biden ahead, though battleground states remain tight.
Europe’s new COVID-19 cases have doubled in five weeks, propelling the region on Sunday to cross the milestone of 10 million total infections, prompting countries such as Britain and Portugal to enact fresh lockdowns.
A stronger US dollar however put pressure on gold and capped its rise. The dollar index was 0.09% higher against a basket of currencies, lowering gold’s appeal to other currency holders.
ETF investors remained on the sidelines. Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, fell 0.1% to 1,257.67 tonnes on Friday.
Speculators also cut their net long position by 3,702 contracts to 131,609 in COMEX gold in the week to October 27, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Gold traders will also be watching for Federal Reserve policy stance. On the monetary policy front, the Federal Open Market Committee meets shortly after Election Day on November 4-5. (With Agency Inputs)
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