Gold prices today fall, silver rates jump2 min read . Updated: 16 Nov 2020, 05:16 PM IST
- Despite the recent correction, gold is up around 30% year to date in Indian markets
- Gold tends to benefit from stimulus measures from central banks
Gold prices today struggled in Indian markets while silver rates edged higher. On MCX, gold futures fell 0.12% to ₹50,925 per 10 gram while silver futures rose 0.22% to ₹63,941 per kg. In India, trading on commodity exchange MCX started from 5 pm today. MCX remained closed for the morning session today on the occasion of Diwali Balipratipada.
On Saturday, in the special one-hour Muhurat trading session, gold futures on MCX had ended flat while silver rates edged lower. Overall for the week as a whole, gold prices on MCX fell ₹1,200 per kg, tracking a similar trend in overseas markets as optimism over covid vaccine put pressure on gold prices.
In global markets, gold prices today inched higher in global markets, supported by a weaker dollar. The yellow metal also benefitted from hopes of more stimulus as coronavirus cases continued to rise in many parts of the world. Spot gold rose 0.3% to $1,893.30 per ounce, after hitting its $1,898.81 earlier in the session. The dollar index today hit a one-week low, making gold cheaper for holders of other currencies. Silver rose 1.1% to $24.91 per ounce. Platinum rose 1% to $897.52, while palladium was 1.1% higher at $2,350.20.
In global markets, gold prices fell 3.3% last week after Pfizer said its experimental COVID-19 vaccine was over 90% effective based on initial trial results.
Meanwhile, last week, US Federal Reserve Chairman Jerome Powell repeated week his view that more action from the central bank and Congress, in the form of further fiscal stimulus, would likely be needed.
Gold tends to benefit from stimulus measures from central banks as it is considered a hedge against inflation and currency debasement and the yellow metal has soared 29% this year so far in Indian markets.
ETF investors continued to remain on the sidelines. Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.42% to 1,234.32 tonnes on Friday.
Asian equities hit a record high on Monday as investors set aside fears about rising coronavirus cases and bought stocks, cheered by data showing a robust recovery in China and Japan. Optimism over covid vaccine also supported the sentiment.
The announcement, a week ago, that Pfizer had developed a very effective vaccine has investors hoping for similar good news soon from rival Moderna and and AstraZeneca.
More data from vaccine creator Moderna Inc. is expected in the coming days, while AstraZeneca and its partner, the University of Oxford, may also have preliminary results in the next few weeks. (With Agency Inputs)
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