Gold rate today drop as hopes of early stimulus wane

NEW DELHI: Bullion counters on MCX were trading with cuts on Thursday, tracking the trend in international markets, as US stimulus talks again derailed, frustrating investors.

Stimulus talks between US lawmakers faced a setback on Wednesday when President Donald Trump accused the Democrats of being unwilling to craft a compromise on aid, despite reports of some progress earlier in the day.

Gold futures on MCX were down 0.47 per cent or Rs 243 at Rs 51,090 per 10 grams. Silver futures fell 1.18 per cent or Rs 748 to Rs 62,881 per kg.

In the spot market, gold prices rose by Rs 512 to Rs 51,415 per 10 gram in the national capital on Wednesday, following a positive global trend and rupee depreciation, according to HDFC Securities. Silver prices also jumped Rs 1,448 to Rs 64,015 per kilogram.

Globally, gold edged lower as the dollar recovered from a seven-week trough and some concerns emerged that an agreement on a new US fiscal coronavirus aid package will not be reached until after the presidential election.

Spot gold fell 0.2 per cent to $ 1,920.86 per ounce by 0123 GMT, retreating from a more than one-week high of $ 1,931.01 hit in the previous session. US gold futures were down 0.3 per cent to $ 1,924.30 per ounce.

The economic recovery is uneven and uncertain and will require continued support to ensure it becomes broad-based and sustainable, U.S. Federal Reserve Governor Lael Brainard said on Wednesday, emphasising the need for additional fiscal support.

Gold could touch new highs next year, even as its record-breaking rally slows to average less than $ 2,000 dollars an ounce, a Reuters poll showed.

Holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.1 per cent to 1,269.35 tonnes on Wednesday from 1,269.93 tonnes on Tuesday.

Silver fell 0.4 per cent to $ 24.96 per ounce, while platinum rose 0.2 per cent to $ 887.74 and palladium was up 0.1 per cent at $ 2,406.28.