On Tuesday, 29 September, gold prices edged up in the international markets with spot gold up 0.1 percent to $1,883.51 per ounce as investors move focus to the first American presidential debate and developments of a new coronavirus stimulus bill in the US.
Consequentially, gold prices in India rose above the Rs 50,000 per 10 gram mark, with futures on MCX (India's largest commodity exchange) trading 0.24 percent higher at Rs 50,255.
The climb in domestic rates was curbed by the fall in dollar index which has been drifting away from its two-month high seen last week. A weaker dollar makes the yellow metal cheaper for holders of other currencies.
US House of Representatives Speaker Nancy Pelosi on Monday said that the Democratic lawmakers unveiled $2.2 trillion relief bill but did not specify when there would be a vote on the
"If that bill gets passed before the November elections, I think that will help risk sentiment. Gold may be pushed higher by virtue of the dollar weakening and heightened inflation expectations," said aneconomist at OCBC Bank to Reuters.
The yellow metals is considered as a hedge against inflation and currency debasement, rising over 20 percent this year, mainly supported by unprecedented stimulus measures by governments and central banks around the world to revive their coronavirus-battered economies.
According to data compiled by Johns Hopkins University, as of Monday, the coronavirus pandemic has killed at least 1 million people across the globe, with roughly half of the total fatalities reported only in 4 countries- the US, Brazil, India and Mexico.
Last week, rates of the precious metal were under pressure amid a resurgent US dollar, a safe-haven asset in times of risk averse in global financial markets.