Gold Prices Near Rs. 49000 Even As International Prices Drop

Gold prices continue to swing between losses and gains and after losing in the early trade owing to strength in dollar, regained some losses. On the MCX, at around 11:26 am, the precious yellow metal traded firm by 0.4 percent or Rs. 196 to near Rs. 49000 per 10 gm.

In the international markets, gold prices are trading near 1.5 month low even as US consumer spending data led to risk-off sentiment among investors and also there are continued hopes of a broader dole out by the US central bank to tackle the economic fall-out due to the pandemic.

Spot gold fell 0.3 per cent to $1,820.46 per ounce by 0048 GMT, having fallen to their lowest since Dec. 2, 2020 at $1,809.90 earlier in the session. US gold futures eased 0.7 per cent to $1,816.80.

Also, another factor that weighed is the China's growth data which pipped forecast and came in at 2.3 percent pointing to slow and steady economic revival in the country.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust rose 1.4 per cent to 1,177.63 tonnes on Friday.

Now as per the views of Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart, precious metals will continue to be volatile ahead of the swearing in ceremony of the US President elect on January 20, 2021.

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