Gold Price In India: Domestic gold futures eked out gains in the final hours of a volatile session on Tuesday, as cautious investors awaited the outcome of the US presidential election with President Donald Trump closely trailing Democrat Joe Biden in national opinion polls. Multi Commodity Exchange (MCX) gold futures, due for expiry on December 4, moved within a range of more than Rs 350, between Rs 50,789 and Rs 51,165, compared to their previous close of Rs 51,067, before settling at Rs 51,130 for the day. Silver followed suit, ending 0.59 per cent higher at Rs 62,370. (Also Read: Is Silver The New Gold?)
Analysts say a Biden win could help the bullion rally with his plans to inject a potentially large stimulus aid.
Benchmark gold futures on Comex were last seen trading 0.50 per cent higher at $1,902 per ounce.
The dollar index – which measures the US currency against six peers – traded down 0.58 per cent. The rupee ended nearly unchanged against the greenback at 74.40 for the day.
Analysts also say concerns about rising COVID-19 cases in the US and Europe are supporting gold.
— IBJA (@IBJA1919) November 2, 2020
Domestic spot gold closed at Rs 51,242 per 10 grams on Tuesday, and silver at Rs 62,250 per kilogram – both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
What Analysts Say
“Gold is choppy amid uncertainty ahead of US elections. Support from rising coronavirus cases and hopes of additional monetary and fiscal measures were countered by exchange traded fund outflows and general strength in the US dollar,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
“Gold has bounced back from recent lows however we may not see a sustained rise until US dollar corrects.”