In the domestic market, gold prices on the MCX again spurted by a heavy 1. 5 percent to Rs. 49930 per 10 gm. The gains have been on the back of grim US jobs data which fuelled hopes of the US stimulus. Nonetheless, rally to an extent remained curbed on account of vaccine administration.
In the international markets, gold was quoting at $1840.65 per ounce. "Softer jobs growth and tighter social mobility restrictions ostensibly lower the hurdle for a policy response from (U.S.) Congress," said Stephen Innes, chief global market strategist at ..financial services firm Axi.
US stimulus looks closer:
On Friday, there were talks over the stimulus as bipartisan U.S. lawmakers worked to put the finishing touches on a new $908 billion bill.
Also going forward, gold prices will also gain from higher stimulus package will tend to push inflation higher and gold works as a hedge against inflation.
Factors that could spur rally in the near term in gold include are:
Continuing dollar weakness
Rise in coronavirus cases
Weakness in US job market
Gold Price Outlook In Near Term
In anticipation of all these factors, gold is expected to scale to $1900 per ounce in December as per Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, India.