Gold Price In India: Domestic gold futures recovered early weakness to push higher on Monday, despite strength in the dollar overseas, which made the yellow metal more expensive for those trading in other currencies. Multi Commodity Exchange gold futures – due for a December 4 expiry – rose as much as 0.59 per cent to touch the Rs 51,000 mark during the session, before giving up some of those gains. The contract rose 0.38 per cent to end at Rs 50,890 for the day. Concerns about rising COVID-19 cases in the US and Europe and uncertainty over the upcoming US presidential election is supporting the gold rates, say analysts.
Silver followed suit, gaining by Rs 748 – or 1.24 per cent – for the day to Rs 60,920. (Also Read: Is Silver The New Gold?)
Globally, Comex gold ticked higher on Monday as caution crept in ahead of Tuesday’s hotly contested US presidential elections, attracting some bids for the safe-haven metal. Spot gold rose 0.4% to $1,884.98 per ounce by 0758 GMT, while U.S. gold futures were up 0.2% at $1,884.00 per ounce.
The dollar index – which gauges the greenback against six major currencies – edged 0.07 per cent higher. The US currency is often seen as a rival safe-haven asset to gold. The rupee weakened 0.43 per cent to settle at 74.43 against the US dollar.
— IBJA (@IBJA1919) November 2, 2020
Domestic spot gold closed at Rs 51,037 per 10 grams on Monday, and silver at Rs 61,867 per kilogram – both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA). The bullion market remained shut on Friday for a holiday.
What Analysts Say
“Gold trades mixed as support from rising coronavirus cases and prospect of additional stimulus measures is countered by a firmer US dollar and exchange traded fund outflows,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
“Gold may remain directionless ahead of outcome of US elections however general bias may be on the upside amid expectations of additional stimulus.”