Gold Nears Rs. 51000 After Long-Awaited US Fiscal Stimulus Agreed Upon

Gold and silver prices in the futures market on the MCX climbed today (December 21, 2020) boosted by agreement over the US stimulus. Gold prices last at around 11:20 am IST quoted higher by 1.16% or Rs. 584 at Rs. 50888 per 10 gm, while silver prices were up a huge over 4% or Rs. 2832 at Rs. 70739 per kg.

Gold prices in the international markets

Spot gold surged 0.8% to $1,896.39 per ounce by 0308 GMT, having earlier scaled to its highest since Nov. 9 at $1,899.29. U.S. gold futures gained 0.7% to $1,902.70.

On Sunday, the Senate's top Republican and Democrat said the US congressional leaders have agreed on a $900 billion package for providing the first aid in several months to the coronavirus-ravaged US economy.

Last week, the US central bank promised to infuse cash into financial markets and continue with low interest rate regime until US economic recovery is secure.
It is to be noted that gold has been rising even though dollar has gained momentum on worsening coronavirus situation globally.

Gold To Close Above $1900 By Year-End 2020

"Now that we've got fiscal stimulus behind us, gold has enough momentum to close above $1,900 by year-end and it could even climb up to $1,925, said Stephen Innes, chief global market strategist at financial services firm Axi.

"If you coalesce the stimulus package with optimism for the Federal Reserve to cap longer-dated yields given it signalled a continuation to its bond buying programme last week, we could see gold remain supported on dips until at least March 2021".

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