BackGold prices today fall, silver rates edge lower
Still, gold prices are on track for its biggest gain in a decadeSilver has outperformed gold this year
PremiumGold and silver prices edged lower today in Indian markets but are on track for strong gains for the year. On MCX, gold futures declined 0.08% to ₹50,097 per 10 gram while silver futures edged lower 0.12% lower to ₹68,531 per kg. Gold has remained in a narrow range for the past two weeks, trading between ₹50,000 and ₹50,500.
Investors continue to access impact of worsening virus situation globally in face of vaccination rollout, says Kotak Securities in a note. Britain on Wednesday became the first country to approve a vaccine developed by Oxford University and AstraZeneca.
In global markets, gold prices were higher today, supported by a weaker US dollar. Gold for immediate delivery was 0.2% higher at $1,897.67 an ounce. The precious metal is up about 24% this year and is poised for its biggest gain in 10 years. In India, gains have been higher, at 27%, due to the rupee's depreciation against the US dollar. India imports most of its gold imports.
Spot silver traded at $26.6448 an ounce, up 49% this year. Platinum gained 0.1% to $1,066.91 and palladium was up 0.2% at $2,366.01.
"The US dollar has come under pressure following US fiscal stimulus deal along with worries over US health in face of surging virus cases in the nation and decline in safe haven demand. Fading prospect of larger aid cheques to individuals has done little to limit the downside," the brokerage said.
In the US, Republican Senate Majority leader Mitch McConnell refused a quick vote on the bill for larger aid cheques, saying it had "no realistic path to quickly pass the Senate.
"Gold may witness choppy trade amid mixed factors and low participation around year-end however price may remain supported by US stimulus measures as well as rising virus concerns. A sustained rise may come once we see fresh triggers or a close above $1900/ounce level," Kotak said.
The latest tranche of sovereign gold bonds, which is currently open for subscription, will close on January 1. The issue price per gram of gold has been fixed at ₹5,000 by the Reserve Bank of India. Investors who apply online and make payment against the application through digital mode get a discount of ₹50 per gram.
(With Agency Inputs)
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