Gold prices in India decline in line with international rates. On the MCX, gold for October futures declined by Rs. 250 or 0.49% to Rs. 50815 per 10gm.Silver also declined in trade by 0.63% or Rs. 431 to Rs. 67840 per kg.
International Gold Rates
International gold rates declined in trade today as stocks stabilized despite the route in US Tech stocks, this depleted gold's safe haven appeal. Though, losses remain capped due to rising coronavirus cases as economic worries continue.
Moreover, there is a case that the US may not dole the massive package. "The headline figures from Friday's U.S. jobs data were pretty good, so that could lead to speculation policymakers may no longer be eager to dole out trillions of dollars to support the economy," said Masahiko Loo, portfolio manager at AllianceBernstein.
"Markets may have gone too far in expecting the Federal Reserve to announce more easing steps this month," he said, adding receding expectations is one reason behind a rise in U.S. bond yields last week.
Nonentheless, with equities seen to volatile ahead of US elections, gold's appeal is likely to gain ground going ahead.