Gold Prices Fall As US Dollar Strengthens In Anticipation Of Election Outcome

On Friday, gold prices in India declined, mirroring losses in the international market where investors flocked to the US dollar as they awaited the outcome of the American presidential elections. While Democrat contender Joe Biden is inching closer to the White House win, the prospect of a contested election remains.

On MCX (Multi Commodity Exchange of India), gold futures were trading lower by 0.3 percent at Rs 51,883 per 10 grams. In the international market, spot gold fell 0.4 percent to $1,940.86 per ounce, after jumping over 2 percent to hit an over one-month high in the previous session.

The outcome of the US presidential is awaited as neither of the two contenders have been able to gain the 270 electoral votes required to name the winner. The results are dependent on the uncounted votes in a handful of battleground states.

President Donald Trump also escalated his efforts to cast doubt on the election's integrity.

The dollar index was up by 0.2 percent, making gold expensive for buyers in other currencies like the Indian rupee, hence less attractive.