Gold prices today fall for second day, silver rates drop sharply1 min read . Updated: 19 Oct 2020, 09:07 AM IST
- Gold may remain choppy in near term as market players continue to assess development relating to US stimulus, Brexit and rising coronavirus cases, say analysts
- However, buying interest is expected to emerge at lower levels
Gold and silver prices in India edged lower today, tracking muted global rates. On MCX, December gold futures fell for the second day as prices slipped 0.22% to ₹50437 per 10 gram while silver futures fell 0.7% to ₹61,250 per kg. In the previous session, gold had settled 0.3% lower while silver had edged up 0.2%. In India, gold prices have lost momentum since hitting a record high of ₹56,200 in August, following the same trajectory as that of global rates.
In global markets, gold rates were steady today, holding up above the key psychological level of $1,900 per ounce amid hopes that US lawmakers could agree on a stimulus package before the Election Day.
Spot gold was little changed at $1,900.21 per ounce while silver rose 0.1% to $24.20 per ounce.
House Speaker Nancy Pelosi said on Sunday that she was optimistic legislation on US stimulus could be pushed through before Election Day that even though differences remained with President Donald Trump's administration on a wide-ranging coronavirus relief package. Democrats have rejected so-called skinny bills with pared-down funding, saying much more is needed.
A stronger US dollar however put some pressure on gold. The US dollar, usually perceived as a safe-haven asset, was higher at 93.735 against a basket of six major currencies.
Gold prices have rallied 25% so far this year, supported by unprecedented stimulus from central banks and governments and concerns over global economic recovery.
On the Brexit front, Britain and European Union will engage in fresh talks this week. Britain still wants to reach a post-Brexit trade deal with the European Union despite the current deadlock, a senior government minister insisted ahead of the talks.
ETF investors continued to remain on the sidelines, awaiting direction of the gold price. Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.27% to 1,272.56 tonnes on Friday.
"Gold may witness choppy trade as market players continue to assess development relating to US stimulus, Brexit and rising virus cases. However we expect buying interest to emerge at lower levels as uncertainty about US economy may limit upside in US dollar," Kotak Securities said in a note.
In India, gold dealers continued to stock up last week ahead of an expected pickup in festival sales. (With Agency Inputs)