Gold prices today fall tracking weak global trend

NEW DELHI: Gold and silver futures slipped in the opening trade on Monday in line with global mood as talks about the US stimulus package came to a halt.

US House Speaker Nancy Pelosi said on Sunday the Trump administration was reviewing the latest plan for more COVID-19 relief over the weekend and that she expected a response on Monday, adding that she was still optimistic a deal could be reached.

Gold futures on MCX were down 0.29 per cent or Rs 147 at Rs 50,692 per 10 grams. Silver futures fell 1.05 per cent or Rs 656 to Rs 61,783 per kg.

In the spot market, gold prices declined by Rs 75 to Rs 51,069 per 10 gram in the national capital on Friday, according to HDFC Securities. Silver prices, however, rose by Rs 121 to Rs 62,933 per kilogram.

Globally, gold prices eased to an over one-week low in early Asia trade as the dollar firmed and talks over the new U.S. coronavirus aid package showed no signs of progress.

Spot gold fell 0.1 per cent to $1,899.41 per ounce by 0053 GMT, after hitting $1,890.19, its lowest since Oct. 15. US gold futures were down 0.2 per cent at $1,900. The dollar index was up 0.1 per cent against a basket of currencies.

Meanwhile, virus cases are surging in the developed world. The US reported 79,852 new infections on Saturday, close to the previous day’s record of 84,244 new cases. Hospitalizations are also rising and have hit a two-month high and deaths are trending upwards. France registered a record increase in infections over the weekend, while Spain announced a state of emergency as a second wave of cases surges through Europe.

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Gold premiums in India jumped to their highest in nearly three months last week, as jewellers continued to stock up on hopes of more customers visiting stores as the festive season gathers pace.

Speculators increased their net long position by 15,488 contracts to 135,311 in week to Oct. 20 in COMEX gold, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Holdings in SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.14 per cent to 1,263.80 tonnes on Friday.

Silver fell 0.5 per cent to $24.45 per ounce, while platinum dipped 0.7 per cent to $895 and palladium eased 0.5 per cent to $2,382.12.



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