Gold rate today slip to Rs 49,000 level as business outlook improves

NEW DELHI: Gold and silver futures slipped in the morning trade on Tuesday as data suggested business outlook has improved significantly. Meanwhile, progress on the vaccine front also put pressure on prices.

US business activity expanded at the fastest rate in more than five years in November led by the quickest pickup in manufacturing since September 2014, fuelling optimism of a swift recovery.

Gold futures on MCX were down 0.83 per cent or Rs 410 at Rs 49,070 per 10 grams. Silver futures dipped 0.98 per cent or Rs 595 to Rs 59,930 per kg.

In the spot market, gold in the national capital witnessed muted trading and was marginally up by Rs 57 to Rs 49,767 per 10 gram on Monday, according to HDFC Securities. Silver, however, declined by Rs 185 to Rs 61,351 per kilogram.

Globally, gold prices eased in early Asian trade on Tuesday as COVID-19 vaccine developments and upbeat U.S. manufacturing data bolstered investors’ hopes of a swift economic recovery.

Spot gold fell 0.1 per cent to $ 1,834.40 per ounce by 0105 GMT. It fell as much as 2.2 per cent on Monday, hitting a four-month trough. US gold futures were down 0.3 per cent at $ 1,833.00.

Holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.6 per cent to 1,213.17 tonnes on Monday from 1,220.17 tonnes on Friday.

JPMorgan has earned record revenue of around $ 1 billion so far this year from trading, storing and financing precious metals, two sources familiar with the matter told Reuters.

Silver dropped 0.1 per cent to $ 23.55 an ounce. Platinum rose 0.8 per cent to $ 933.78, while palladium dipped 0.1 per cent to $ 2,352.15.