On Tuesday, gold eased after rising more than 2% in the previous session, on global cues. On MCX (Multi Commodity Exchange of India), gold futures (February 2021) were trading marginally lower by 0.1% at Rs 51,370 per 10 grams after prices in the international markets subdued as market participants awaited results of Georgia runoff elections that would decide which party controls the US Senate.
On Tuesday, Spot Gold was down 0.2% to $1,938.16 per ounce after hitting $1,945.26 in the earlier session, its highest since 9 November.
The two seats in the US Senate from Georgia will decide the future course of fiscal support for America. A win by Democrats would make it easier for President-elect Joe Biden to push policies such as rewriting the tax code to boosting stimulus.
Gold is a hedge against inflation and currency debasement.
On Monday, gold prices in India crossed the Rs 51,000 per gram mark after British Prime Minister Boris Johnson ordered England into a new national lockdown to contain a surge in COVID-19 cases. Scotland is also set for its lockdown starting Tuesday.
Gold futures on MCX surged by Rs 1,025 to Rs 51,266 per 10 gram on Monday. Concerns of a surge in coronavirus cases amid a slow rollout of vaccine caused investors to opt for the safe-haven asset.