Gold prices in India on Tuesday (November 3, 2020) are firm and holding above Rs. 51000 level as the outcome of the US Presidential elections remain in focus. On the MCX, at the time of writing this report, gold futures for December delivery quoted higher by 0.58 percent or Rs. 294 at Rs. 51361 per 10 gm. Silver too in line was up 0.99 percent or Rs. 612 at Rs. 62619 per kg.
In the international markets, spot gold traded higher by $5.71 at $1,900.84 per ounce at 1216 GMT in London trading.
Triggers keeping gold prices high
Other triggers maintaining the momentum in the precious metal have been subdued dollar which traded lower at 93.50, down 0.56 percent after scaling to a 1-month high in the previous session.
The FOMC is set to commence its two-day interest rate policy meet. And in all probability policymakers will stick by their commitment of backing the Covid 19-battered US economy and continue to hold interest rate near zero levels.
Gold prices to remain choppy in the near term but regardless of who comes to power in the US, yellow metal has bright prospects
Now as we head into the US Election Day, gold prices are likely to trade in a range and shall remain choppy in the near term. Also towards the end of the week, there is scheduled European Central Bank's policy meet which will further increase volatility in the precious yellow metal.
"We are expecting an increase in volatility coming in the next 72 hours. So, because of that people are looking at gold and silver as safe haven play," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
Besides if the outcome of US elections is not clear, it is estimated that gold price could again move back (climb) to $1940 per ounce. And regardless of which candidate wins, there are underlying pieces of continued stimulus, central banks are expanding balance sheets, interest rates are remaining low for extended period of time," added Streible.