Gold, Silver prices in India on November 6: Gold prices in Indian commodity market traded near the key level of Rs 52K on Friday. However, the yellow metal was trading in the negative territory, tracking cues from overseas.
Gold December Futures on the Multi Commodity Exchange traded Rs 115 lower at Rs 51,940, after yesterday's close of Rs 52,055.
Silver December Futures, traded Rs 90 higher at Rs 64,344 per kg today after they touched an intraday low of Rs 64,025 per kg.
Gold fell overseas as the dollar gained, but was set for its best week since late July. Considered as a commodity barometer of economic concern and growth, gold prices traded above the $1900 mark amid hopes for more central bank economic support on nearing chances of Joe Biden's victory in the US Presidential elections.
Spot gold fell 0.5% to $1,939.10 per ounce, after soaring 2.4% on Thursday, heading for a 3.2% weekly gain. US gold futures dropped 0.3% to $1,940.20 per ounce. Silver fell 0.9% to $25.10 an ounce.
Traders said investors hoped a win by challenger Joe Biden in the presidential race might result in an additional economic stimulus for the coronavirus-hit economy. However, developments in the US presidential race and supply glut fears weighed on prices sentiments. Gold tends to benefit from widespread stimulus measures as it is widely viewed as a hedge against inflation and currency debasement.
The dollar rose 0.2%, making gold less attractive for other currency holders.
The Bank of England became the latest central bank to announce more stimulus. Meanwhile, the Federal Reserve kept its loose monetary policy intact and pledged to monetary action when required.
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said, "On Thursday, Spot Gold prices gained over 2.3 per cent to close at $1948.6 per ounce and Spot silver prices surged over 5.9 per cent to close at $25.3 per ounce as increasing bets on Democrat Joe Biden winning the U.S. elections and a lower Dollar boosted appeal for the safe haven, Gold. As the election process commenced, markets anticipated a slight edge towards Democrat Joe Biden which might open gates for larger U.S. stimulus. Gold tends to benefit from stimulus infusion as it is considered as a hedge against inflation and currency debasement. Moreover, the alarming increase in the coronavirus cases around the globe clouded the global economic outlook. Many nations reinforced fresh lockdown which dented markets risk appetite and further supported Gold prices. Gold prices further gains as the U.S. Dollar depreciated ahead of the Federal Open Market Committee (FOMC) meet making the yellow metal cheaper for other currency holders."
He added," As for today traders can go for Buy in gold at Rs 51700 levels with the stop loss of Rs 51400 levels for the target of 52400 levels. They can also go for Buy in Silver at Rs 64,000 levels, with the stop loss of 63200 levels and for the target of 65300 levels."