Gold prices on the MCX began the day slightly lower with Gold Futures for December delivery down 0.21 per cent at Rs 50,395. Gold prices for Feb delivery was down 0.18 per cent at Rs 50,400.
On Tuesday, Gold Futures for December delivery had closed at Rs 50,501. In the global markets spot gold was little changed at $1866 an ounce.
Gold has been exceedingly volatile this week, with prices crashing on Tuesday after Pfizer announced that its corona virus vaccine developed along with German biotechnology firm BioNTech was more than 90 percent effective at protecting people compared with a placebo saline shot. This pushed gold prices lower on Tuesday, however, they have recovered marginally since.
Spot gold price in India was trading at Rs 4972 per 10 grams. Gold prices at the local jewellers are likely to open slightly lower, as MCX prices suggest lower rates.
Much of the movement of gold in the near future would depend on the movement of the dollar and also hopes of a stimulus. If US President Elect, Joe Biden pushes for a new stimulus it might help to push gold prices higher. However, the precious metal has already gained significantly in the last 1 year. Any sharp upside in the precious metal can be ruled out in the short term.