Gold Price Move Tad Higher Even As International Gold Retreats Lower

Gold prices in India on October 14, 2020 gained on subdued global cues. This is even as the dollar gained and internationally gold prices was lower below $1900 per ounce mark.
On the MCX, gold futures for October delivery inched higher marginally after weakening over 1.67% or Rs. 852. In early trade, October gold futures quoted at Rs. 50351, while silver also followed suit after slumping by a record 4 percent or more than Rs. 2568 to Rs. 60530 per kg.

Gold Price Move Tad Higher Even As International Gold Retreats Lower

Gold prices in the international market was hovering below $1900 per ounce mark as dollar remained firm as there was no key decision on the US stimulus package.

Nonetheless the rising coronavirus cases in the US economy signaling of a second wave continue to curb massive fall in the precious metal. Spot gold was little changed at $1,892.80 per ounce by 0053 GMT.U.S. gold futures were steady at $1,896.60.
On Tuesday, dollar index bounced from a near three-week low.

The hopes of a US stimulus remain dented as the US House Speaker Nancy Pelosi denied a $1.8 trillion proposal citing it to be insignificant to combat the fall out due to the pandemic. Hopes for a new coronavirus relief package were dented as U.S. House

Also, on the sidelines, a failure to curb the pandemic and provide stimulus as well as manage increasing debt can further weaken the soft pace of economic recovery being witnessed world over.

Also, vaccine delay for the coronavirus is also a cause of concern which may once again bring about sheen in gold.

Gold price outlook

Despite gold price losing ground, some of the uncertainties in relation to the US election, rising coronavirus cases in Europe as well as several states of the US, delay on vaccine and stalling of talks for a broad US stimulus may keep the precious yellow metal to trade in a rangebound manner.

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