Gold prices in India on September 16, 2020 are up only slighthly on rupee depreciation. On the MCX, gold October futures are up by 0.08% or Rs. 43 at Rs. 51812 per 10 gm. In the previous day's trade, gold in the futures market settled with minor gains at Rs. 51769 and silver also had the same fate which closed at Rs. 68967 per kg.
In the international market, gold prices retreated lower as dollar further softened ahead of the US Fed decision on monetary policy. Spot gold was down 0.2% to $1,952.15 per ounce by 0026 GMT, after hitting its highest since Sept. 2 at $1,971.71 on Tuesday.
Today, the US Fed will release its monetary policy statement at 1800 GMT and expectations are largely for it to be remain dovish that shall further keep the greenback subdued, imparting strength to the precious yellow metal.
U.S. House of Representatives Speaker Nancy Pelosi said Democrats were inclined to delay an October recess for clinging a deal with Republicans on a new coronavirus aid bill.
Japan's export data has come in weaker for the 21st straight month, indicating the demand impact due to coronavirus.
Outlook fogr gold for this week
Navneet Damani, Vice President, Motilal Oswal, said, "Gold extended its gains following weakness in the dollar against its major crosses and volatility in the next couple of sessions is expected to remain high ahead of the important Fed policy statement that is scheduled for release this week. Uncertainty on the Brexit front is also likely to keep gold prices supported at lower levels. Yesterday, British PM Boris Johnson won the so-called second reading vote on the bill that the EU says would collapse trade talks and propel the United Kingdom towards a messy Brexit. Apart from Fed, Bank of England will be releasing its policy statement and is likely to have an impact on the overall market"