The futures prices of the gold in a domestic market traded with cuts, on Tuesday, in the morning trade, due to the US Federal Reserve’s monetary policy decision that is due later in the day. Investors are now awaiting a stimulus package in the USA.
The Democrats in the US Senate took a lot of effort to check the losses. According to the Senate Democratic leader Chuck Schumer, these democrats said that they will move forward with the US President Joe Biden’s $1.9 trillion relief plan for coronavirus without any Republican support. He also said that gold is considered to be a hedge against inflation, especially due to the widespread stimulus.
Gold futures on MCX were down by 0.60 percent or Rs 293 at Rs 48,850 per 10 grams. Silver futures, on the other hand, dropped by 0.63 percent or Rs 418 to Rs 66,117 per kg. Ravindra Rao who is the Vice President of Head Commodity Research at Kotak Securities said that COMEX gold trades are lower by 0.5 percent near $1,835/oz after a 0.3 percent decline the day before. Gold was seen to weaken as the Fed painted a downbeat outlook for the US economy. Although, he did not hint towards additional measures. Fed’s growth outlook along with ECB’s willingness to cut the rates down pushed the US dollar higher putting more pressure on gold. It was also seen that the ETF outflows showed weak investor interest.
Rao also said that gold may witness terrible trade until and unless there are any fresh triggers although the general bias may be on the positive side of the hopes of US stimulus and expectations.
Gold prices have been steady since Wednesday. Spot gold was changed a little at $1,849.76 per ounce. The US gold futures were seen to ease by 0.1 percent to $1,848.60. Silver, however, was flat at $25.43 an ounce. Platinum, on the other hand, rose by 0.1 percent to $1,099.68, and palladium grew by 0.1 percent at $2,326.30.