NEW DELHI: Gold prices today inched higher in Indian markets, after suffering losses in the past five sessions. On MCX, October gold futures rose 0.4% to ?51,139 per 10 gram while silver futures gained 0.6% to ?64,379 per kg. In the previous session, gold futures fell 0.5% while silver slumped 2%. From August 7 highs of ?56,200, gold prices in India have corrected about ?5,000 per 10 gram.
In global markets, gold rates were steady with spot prices of the yellow metal trading at $1,927.26 per ounce. Worries over the global economic recovery offset an uptick in risk sentiment driven by signs of progress in US-China trade negotiations. The dollar index held steady at 93.108 against a basket of major currencies.
Among other precious metals, silver rates were steady at $26.43 per ounce while platinum rose 0.1% to $928.12.
Top U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal, which has seen China lagging on its obligations to buy American goods, giving a boost to financial markets on Tuesday.
“Optimism surrounding Covid vaccine continues to lift the demand of riskier assets which is weighing the demand of safe assets like gold. A strong US dollar also puts downside pressure on prices. Meanwhile, investors may take a cautious note ahead of the key US central bank speech scheduled on Thursday,” said Hareesh V, Geojit’s head of commodity research.
Gold traders await Federal Reserve Chair Jerome Powell’s scheduled speech on Thursday about the central bank’s monetary policy framework review, which has focused on a new inflation strategy.
The US dollar index is holding above recent lows as market players await more clarity on Fed’s monetary policy stance, Kotak Securities said.
“However impasse of additional fiscal stimulus continued to limit upside. Gold may continue to witness choppy trade as US dollar struggles for direction however we may see buying interest emerging at lower levels amid continuing challenges in form of rising virus cases,” the brokerage added.
ETF investors have moved to sidelines amid lack of clarity about future price direction, say analysts. The holdings of world’s biggest exchange traded fund, SPDR Gold Trust, fell 0.3% to 1,248.87 tonnes on Tuesday from 1,252.38 tonnes on Monday.