Gold price and silver futures prices in the domestic market traded with cuts on Wednesday amid uncertainty around elections in Georgia, which will decide how easy it will be for US President elect Joseph Biden to take decisions during his presidency.
Polls closed in Georgia’s dual runoff elections that will determine both control of the US Senate and Biden’s ability to push through an ambitious legislative agenda. While Democrat candidates jumped to early leads in preliminary voting returns, the outcome may remain in doubt for days if the margins are razor-thin.
Gold futures on Multi Commodity Exchange (MCX) were down 0.26 per cent or Rs 133 at Rs 51,587 per 10 grams. Silver futures dipped 0.66 per cent or Rs 469 to Rs 70,385 per kg. The profit booking comes after four straight days of gains.
“COMEX gold tested the highest level since early November but has retreated to trade mixed near $1,950/ounce. Supporting gold price is hopes of continuing US stimulus measures, worsening virus situation and increased geopolitical tensions relating to Iran and increased US-China tensions,” Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
“ETF outflows however show wariness in investors. The general momentum is positive however hopes of Democrat win in Georgia and Fed’s dovish stance has already been factored in and this may limit the gains.”
In the spot market, gold gained Rs 335 to Rs 50,969 per 10 gram in the national capital on Tuesday amid rupee depreciation. Silver also went up by Rs 382 to Rs 69,693 per kg. — Gold Silver Reports (GSR)