Gold Gains on Hopes of US Stimulus Package

Gold rates on MCX April Futures climbed above Rs 48,000, continuing a bullish pattern seen in the international spot price. Futures for the MCX Silver March also traded above Rs 70,000.

International Gold prices climbed on a weakening dollar and expectations of a major U.S. stimulus package spurred the appeal of the precious metal.

At 3.36 pm, gold futures for April delivery were quoted higher by 0.70 percent or Rs. 337 at Rs. 48176 per 10 gm. Also, silver traded with a gain of close to 0.64% or Rs. 452 at Rs. 70652 per kg.

As investors booked gains, the bullion metal lost Rs 2,562, or 4.68 percent, on MCX for the week.

Joe Biden's $1.9 trillion relief package, which is now making its way through Congress, is expected to be approved by the Democrats in both chambers.

The key factor of gold is optimism in the relief bill of US President Joe Biden and the anticipation of a further weakness of the US dollar. With markets anticipating more support from the US, yellow metal prices have risen on the international market for the third day.

According to India Bullion and Jewellers Association Ltd. (IBJA), the fine gold was priced at Rs 47,967 per 10 gram during the afternoon session.

The price of 22-carat gold is Rs 43, 938 per 10 gram; and the price of 18-carat is Rs 38,370 per 10 gram, as per IBJA.

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