Gold prices in India also fall in line with international rates. And on the MCX, gold futures for October delivery fell sharply to day's low of Rs. 50004 per 10gm, while last it quoted down by over 1% or Rs. 511 at Rs. 50015 per 10 gm.
In the international markets, gold today receded lower as the US President Trump after coming to the White House has for now calls off talk with the Democratics for the US stimulus until after the election. Spot gold was steady at $1877.15, after it weakened by 2% and hit a 1-week low of $1874.05 per ounce. Also, US gold futures were dragged lower 1.4 percent at $1882.9.
The move on US stimulus also pushed dollar index higher by 0.2 percent which weighed on gold which shares inverse relationship i.e. when dollar index moves higher, gold prices moves downward and viceversa.
Roll out of stimulus boost the precious yellow metal price-wise. Also, in the US, the country's trade deficit in August surged to the highest in 14 years with imports surging again, that may have a bearing on the third quarter growth of the world's most developed economy.
Also, coronavirus cases continue to rise in the world, hinting at more time taken for the global economic revival and hence another factor for the support to gold prices.