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Gold prices today move higher after 2 days of decline, silver rates go up

Gold prices edged higher in Indian markets after two days of decline. Tracking gold, silver also edged higher. On MCX, December gold futures were up 0.28% to 50,425 per 10 gram while silver futures rose 0.7% to 60,577 per kg. In the previous session, gold had dipped 0.45% while silver had settled flat. In global markets, gold prices edged higher amid some weakness in US dollar. But the gains remained capped amid uncertainty over US stimulus package.

Spot gold prices was 0.2% higher at $1,870.9 an ounce. The dollar index was down 0.14% after hitting a one-month peak on Thursday. Uncertainty remains high before the US November 3 vote, lifting the dollar’s appeal as a haven asset over bullion.

President Donald Trump’s chief economic adviser said on Thursday that any deal on coronavirus relief legislation would have to wait for now. The European Central Bank has committed to take new action in December to contain the growing fallout from a second wave of coronavirus infections.

“Rising coronavirus cases have forced countries to impose tighter restrictions which in turn will impact economic activity and the nascent economic recovery seen in last few months,” said Kotak Securities in a report.

“Gold traders are also non-committal ahead of US elections. Apart from uncertainty about who will win the Presidential elections, market players are also assessing possibility of a divided Congress and a contested vote. Also while market focus is currently on who can get the bigger fiscal stimulus approved, a new government could have far reaching effect on other economic policies as well,” the brokerage added.

Since hitting a record around 56,200 per 10 gram in August, gold’s rally has faltered. Still, holdings in exchange-traded funds or gold ETFs remain close to an all-time high.

According to World Gold Council, the September quarter saw continued inflows into gold-backed ETFs, although at a slower pace than in the first half. Investors globally added 272.5 tonnes to their holdings of these products, taking year to date flows to a record 1,003.3 tonnes.

The World Gold Council also noted that though jewellery demand improved from the June quarter record low, “the combination of continued social restrictions, economic slowdown and a strong gold price proved onerous for many jewellery buyers.” (With Agency Inputs)

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