Gold prices in India on Friday (October 30, 2020) moved higher even as international rates held steady. On the MCX, gold futures for December delivery at around 1:15 pm traded higher by Rs. 183 or 0.36% at Rs. 50465 per 10gm, silver however was steady at Rs. 60168, with a marginal change of just 0.01 percent or Rs. 4.
International Gold Prices Steady Near One-Month Low Price
In the international markets, gold prices in today's deal hovered near the one-month low price hit in the previous session as dollar gained ground and hopes on release of fresh US stimulus to mitigate the impact of Covid 19 before the US Presidential elections dimmed. Spot gold held constant at $1,867.30 per ounce and was on course to record its worst week in more than a month. Nonetheless, US gold futures were down 0.1% at $1,866.20.
Dollar Index Steady Near One-Month Peak
In the previous session, dollar index hit a one-month high and is set for its best week since late September. This is as the safe haven appeal of the greenback surged over bullion amid high uncertainty ahead of US Presidential elections.
Chief economic adviser of President Trump on Thursday said that any deal on coronavirus relief legislation would have to wait for now. On the sidelines, the ECB has agreed to take fresh measures in December for tackling the increasing economic fall-out due to the second coronavirus wave.
YTD Investors' Holdings In Gold ETFs At 1003.3 tonnes
In the September quarter also inflows into gold backed ETFs remained firm with global addition of investors' holdings into this asset class at 272.5 tonnes, taking the year to date holdings of global investors into gold ETFs to a record 1,003.3 tonnes.
"Gold traders are also non-committal ahead of US elections. Apart from uncertainty about who will win the Presidential elections, market players are also assessing possibility of a divided Congress and a contested vote. Also while market focus is currently on who can get the bigger fiscal stimulus approved, a new government could have far reaching effect on other economic policies as well," the brokerage firm Kotak Securities said.