Meanwhile, Biden will press Congress on Thursday to deliver immediate pandemic “rescue” efforts before turning to broader “recovery” measures like healthcare and infrastructure, the incoming administration’s top economic adviser said on Wednesday.
Gold futures on MCX were down 0.90 per cent or Rs 445 at Rs 48,860 per 10 grams. Silver futures slipped 1.18 per cent or Rs 779 to Rs 65,242 per kg.
“COMEX gold trades 0.45 per cent lower near $1,837/oz after a 0.6 per cent gain yesterday. Gold continues to trade in broad range as support from higher US stimulus, rising virus cases, impeachment proceedings against President Trump is countered by vaccine progress and weaker investor interest as is evident from ETF outflows,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
“Gold may remain choppy unless there are fresh triggers however general expectation of higher US stimulus may continue to support prices.”
In the spot market, gold prices fell Rs 203 to Rs 49,285 per 10 gram in Ahmedabad on Wednesday as rupee appreciation capped upside in the price of the precious metal. Silver prices dipped Rs 397 to Rs 65,174 per kilogram
“The US bond yields remained vary triggering some selling pressure in yellow metal. However, gold prices are expected to find support on stimulus hopes limiting the downside. Gold prices are expected to trade sideways to down for the day. COMEX gold has important resistance at $1,860 per ounce and support at $1,820 per ounce. MCX Gold February futures support lies at Rs 48,700 and resistance at Rs 49,500 for the day,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Gold prices rose on Thursday ahead of US President-elect Joe Biden’s coronavirus stimulus proposal. Spot gold rose 0.3 per cent to $1,848.07 per ounce by 0054 GMT, while US gold futures eased 0.4 per cent to $1,847.70.
Holdings of the world’s largest gold-backed exchange-traded fund SPDR Gold Trust fell 0.9 per cent to 1,171.21 tonnes on Wednesday. Silver rose 0.8 per cent to $25.34 an ounce. Platinum climbed 0.4 per cent to $1,098.77, while palladium eased 0.4 per cent to $2,375.45.