In India, gold prices inched lower by a tad to Rs. 49137, even as the dollar weakened. Silver in line also headed lower falling below Rs. 53000 per kg levels even as the white metal has the potential to surpass gains recorded by gold this year.
Gold prices steadied above $1800 per ounce in the international markets as US-China tensions brewed up further, nonetheless gained remained capped due to strong equities.
The US President Donald Trump signed legislation for levying sanctions on China as retaliation to its interference with Hong Kong's autonomy. The US President also signed an executive order ending the preferential treatment that Hong Kong has long enjoyed.
"Gold inched higher holding firm above the key $1,800 level, as worries over surging coronavirus cases and simmering China-US tensions lifted demand for the safe-haven metal. Many US states have temporarily halted the reopening of their economies to curtail the outbreak. Fed officials warned that the US economy faces a longer recovery from the pandemic, and economic pain could still worsen as cases mount", said Navneet Damani, Vice President, Motilal Oswal.
Also, gold's luster has been kept subdued as equities gained in the US owing to good quarterly numbers by Goldman Sachs and prospects of a Covid 19 vaccine.
No direction for gold prices currently
"COMEX gold trades up near $1816/oz after on US Dollar weakness. Gold is still directionless as market players counter hopes of economic recovery and continuing stimulus measures against rising virus cases and deepening US-China tensions. Investment demand is still robust showing investor interest in the safe-haven asset. General bias remains on the upside until $1790/oz holds on closing basis", said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.