Gold prices on the MCX in the futures market were weak by a tad and this is in line with international gold pricing. At around 11:38 am, gold on the MCX quoted down by Rs. 44 or 0.09% at Rs. 48850 per 10gm. Silver on the other hand was firm at Rs. 65507 per kg.
Internationally price of gold has gained as a larger US bail-out outweighs any firmness in the dollar. Furthermore, back in India the roll out of the coronavirus vaccine which began on January 16, 2021 is seen as a positive propelling risk sentiment and in turn taking the sheen out of safe haven assets such as gold.
Spot gold rose 0.1% to $1,838.51 per ounce by 0039 GMT. On Monday, prices had dipped to their lowest since Dec. 2 at $1,809.90. U.S. gold futures gained 0.4% to $1,836.50. Also, after the US committed to a $1.9 trillion package to fight the fall-out due to the pandemic, Euro zone also pledged to continue with its fiscal support.
Moreover, as prices of gold has seen a pullback from levels of Rs. 56200 to now below Rs. 49000, there is seen an impetus in buying of the precious yellow metal ahead of the wedding season due in April to June in India.