MCX Gold Tips Today : Gold yesterday settled up by 0.28% at 50687 as the dollar exhibited weakness as traders hoped the U.S. lawmakers will agree on a stimulus bill before the upcoming presidential elections.
Recent positive data on retail sales from China helped as well.Meanwhile, Chinese economy grew in the third quarter, although the pace of growth was lower than expected.
On the stimulus front, house Speaker Nancy Pelosi said on Sunday differences remain with President Donald Trump’s administration on a wide-ranging coronavirus relief package but she was optimistic legislation could be pushed before the Nov.3 election.
President Trump said he would be open to a stimulus package bigger than the $2.2 trillion proposed by Democrats. Gold has gained about 26% so far this year as investors sought refuge from a worsening coronavirus pandemic and also risks of inflation and currency debasement as global central banks slashed interest rates while pumping out unprecedented stimulus to contain the economic blow.
Physical gold dealers in India continued to stock up this week ahead of an expected festival sales bump, while the Golden Week in top consumer China did little to revive bullion demand.
Demand from dealers has been improving slowly as they expect a revival in retail purchases during the festival season. Dealers charged an $1 an ounce premium over official domestic prices, down from last week’s premium of $2.
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