Gold Price Lose Momentum Ever Since August; Down Today On Muted Global Rates

Gold prices in India edged lower on October 19, 2020 even as international rates held steady. On the MCX, gold futures for December delivery quoted lower by 0.11 percent or Rs. 55 at Rs. 50492 per 10gm. Silver prices also declined by 0.54 percent or Rs. 335 and quotes at Rs. 61341 per kg.

In the international markets, gold rates have been steady above the key psychological level of $1900 per ounce. This was as hopes around the fresh US stimulus package dole out before the US election again strengthened. Spot gold was little changed at $1,900.21 per ounce by 0058 GMT. U.S. gold futures were down 0.2% at $1,902.90.

At the same time, a stronger dollar was weighing on gold too which quoted at 93.735 against six major currencies.

House Speaker Nancy Pelosi said that though differences remained but still optimism prevails on legislation passing through before November 3 elections.
This week on the Brexit deal, Britain shall still try on striking a post-Brexit deal with the European Union even despite the current impasse.

Gold prices this year has moved a massive 25% and till August highs the gains have been of 40% on central bank's liquidity push as well as economic and geo-political crisis springing on the back of Covid 19.

"Gold may witness choppy trade as market players continue to assess development relating to US stimulus, Brexit and rising virus cases. However we expect buying interest to emerge at lower levels as uncertainty about US economy may limit upside in US dollar," Kotak Securities said in a note.

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