Gold price trades above Rs 51K mark; silver at Rs 62,900

Gold, Silver prices in India on October 22: Gold prices fell on Thursday following weak cues from overseas but managed to hold the Rs 51K mark in India as the safe-haven asset attracted investors amid rising coronavirus cases.

Gold October Futures on the Multi Commodity Exchange traded Rs 250 lower at Rs 51,070 after hitting an intraday high and low of Rs 51,199 and Rs 51,065, respectively.

Silver September Futures traded at Rs 62,995 per kg today, falling Rs 670 over the last close of Rs 63,629 per kg.

In global markets, gold futures fell today as dollar recovered some ground. The dollar index retreated today against its rivals as concerns emerged that an agreement on a new US fiscal coronavirus aid package will not be reached until after the Presidential election on Nov 3.

Spot gold futures fell 0.2% to $1,920.86 per ounce, while US gold futures were down 0.7% to $1,916.00 per ounce. Silver was down more than 1% to $24.79 per ounce.

Gold, viewed as a hedge against inflation and currency debasement has consolidated around $1,900 mark, amid delay in additional economic relief package in the US.

Coronavirus cases continue to rise in the Euro region, with many states temporarily halting the reopening of their economies to stem the outbreak. Concerns over the economic impact of rising coronavirus infections in many countries have driven investment inflows into safe-haven assets like gold.

Globally, there were 414.87 lakh confirmed cases and 11.3 lakh deaths from COVID-19 outbreak. In India, COVID-19 caseload breached the 77-lakh mark and the death toll from COVID-19 infections rose to 1.16 lakh, as of today.

On London spot technical outlook, he added," In the event of inability to move past $1940, we can expect selling pressure to continue during the day. However, major weakness may be seen only a close below $1840."

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