Gold, Silver prices in India on October 26: Gold price lost ground in the Indian commodity market on Monday tracking weakness from overseas and traded near the key psychological level of Rs 50K. Gold prices traded below $1,900 mark overseas as the dollar bounced back amid delay in negotiations over a new US coronavirus relief aid.
In a volatile trading session, Gold October Futures on the Multi Commodity Exchange fell by Rs 230 to trade near day's low of Rs 50,600, after hitting an intraday high of Rs 50,720.
Silver September Futures traded Rs 980 lower at Rs 61,470 per kg today after they touched an intraday low of Rs 61,450 per kg.
Global rates of bullion fell to an over one-week low on Monday amid rising dollar. The dollar index was down 0.1% against the basket of six currencies. Spot gold fell 0.1% to $1,898.28 per ounce, while US gold futures were down 0.3% at $1,899.30. Silver also dipped 1.1% to $24.32 per ounce.
US House Speaker Nancy Pelosi said it was still possible to get another round of COVID-19 aid before the November 3 election, but that it was up to President Donald Trump to act, Meanwhile, Trump and Federal Reserve Treasury Secretary Steven Mnuchin countered that Pelosi must compromise to get an aid package.
In Europe, Spain announced a state of emergency, while France registered a record increase in infections over the weekend. Italy ordered bars to close early and shut public gyms in a bid to stem a resurgence of the second wave of cases through Europe.
Gold, viewed as a hedge against inflation and currency debasement has risen over 25% this year, supported by unprecedented monetary stimulus from major central banks. Fresh rounds of coronavirus-induced lockdowns across Europe and the US have underpinned the need for more stimulus, to help recover from the sluggish pace of the global economy.
Worldwide, there were 433 lakh confirmed cases and 11.59 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 79-lakh mark and the death toll from COVID-19 infections rose to 1.19 lakh, as of today.
In COVID-19 vaccine update, Gilead Sciences Inc's antiviral drug remdesivir became the first and only drug approved for treating patients hospitalized with COVID-19 in the United States. Investors also turned cautious over the delay of the potential for additional fiscal stimulus.
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said, "Last week, Spot Gold prices gained 0.1 percent and Spot silver ended gained 1.7 percent to close at $24.6 per ounce as worries over the pandemic and uncertainties ahead of the upcoming U.S. election boosted the appeal for the safe haven, Gold. The U.S. currency weakened as House Speaker Nancy Pelosi reported progress in the talks with the White House Officials over the new coronavirus relief fund by the U.S. before the upcoming elections."
He added," However, no concrete signs of an actual agreement kept the prices in check. Lower interest rates and an enormous amount of liquidity infusion by global central banks helped Gold gains about 25 percent in 2020 as it is considered as a hedge against inflation and currency debasement."