Gold and silver rates in India edged lower today, tracking muted global cues. On MCX, gold futures today fell 0.43% to ₹50,546 per 10 gram, extending losses to the third day.
Silver futures on MCX also declined 0.6% to ₹62,875 per kg. Last week, gold prices in India had retreated ₹1200 per 10 gram as optimism about covid vaccine lifted global risk sentiment and put pressure on the yellow metal. As compared to its August highs of ₹56,200, gold prices are now down about ₹6,000.
In global markets, gold rates edged lower today even as coronavirus cases continued to surge in many parts of the world. Gold slid 0.2% to 1,876.85 an ounce. Among other precious metals, silver was flat at $24.47 per ounce while platinum was steady at $925.60.
Asian stock markets were steady today after US shares retreated overnight as investors weighed escalating Covid-19 cases against optimism over a vaccine. The dollar nudged higher versus major peers.
Pfizer Inc. Chief Executive Officer Albert Bourla on Tuesday said that a key safety milestone had been reached in the study of its vaccine, and the drug maker is now preparing to seek an emergency-use authorization.
“Gold is is struggling to gain momentum to break past the $1900/oz level. Mixed factors have kept gold bound in a range and this trend could continue in the near term. Weighing on gold price are signs of progress on vaccine for COVID-19,” Kotak Securities said in a note.
Moderna Inc. this week said its vaccine had 94.5% efficacy in a preliminary analysis of a large, late-stage clinical trial. That followed similar positive developments from Pfizer on its vaccination last week.
The impact on gold prices after Moderna Inc’s vaccine announcement has been muted as there are persisting challenges from currently worsening virus situation which has forced authorities to impose tighter restrictions hampering economic activity, say analysts.
But hopes of US stimulus also supported gold at lower levels. US Federal Reserve Chair Jerome Powell said on Tuesday it was not time to shut down emergency programs aimed at battling the economic fallout from the pandemic and the economy is left with “a long way to go” to recover.
The dollar index edged higher to 92.450, making gold costlier for holders of other currencies.
“Gold may remain choppy amid mixed factors however we maintain buy on dips view as rising virus cases may keep market expectations high that governments and central banks may undertake more stimulus measures to support their economies,”