Gold Prices Inch Higher Even As Global Rates Steady On Vaccine Hope

Gold prices in Monday's trade in India have risen despite risk on sentiment. On the MCX, gold for October delivery quoted higher by 181.00 or (0.35%) at Rs. 51500 per 10 gm.

In the international market, gold prices remained steady as resumption of vaccine trial by Astrazeneca pushes risk-on sentiment. Also, monetary policy decision by the US Federal Reserve is eyed this week. Spot gold was mostly unchanged at $1,941.11 per ounce by 0042 GMT.U.S. gold futures were also steady at $1,948.30.

Gold prices on Friday declined as the ECB sent dovish signals with no concrete sign on further bailout and also uncertainty over the US stimulus remains. "The ECB did not address the stronger euro, neither did it come up with any stimulus plans, which will keep inflation in check in the euro zone. That's negative for gold," said Quantitative Commodity Research analyst Peter Fertig.

Gold Prices Inch Higher Even As Global Rates Steady On Vaccine Hope

Also, the unemployment claims in the US remained stable for the last week.
Another trigger for the gold price was the sudden halt of the trial process of Astrazeneca's Covid 19 vaccine candidate and its likely resumption now will to some extent give a push to risk-on sentiment.

Gold price outlook

"ETF investors have also moved to the sidelines. Although gold is choppy from the last few sessions, uneven global recovery, rising virus cases, US-China tensions and Brexit uncertainty may support the prices at lower levels," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities .

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