Polls closed in Georgia's dual runoff elections that will determine both control of the US Senate and Biden's ability to push through an ambitious legislative agenda. While Democrat candidates jumped to early leads in preliminary voting returns, the outcome may remain in doubt for days if the margins are razor-thin.
Gold futures on Multi Commodity Exchange (MCX) were down 0.26 per cent or Rs 133 at Rs 51,587 per 10 grams. Silver futures dipped 0.66 per cent or Rs 469 to Rs 70,385 per kg. The profit booking comes after four straight days of gains.
“COMEX gold tested the highest level since early November but has retreated to trade mixed near $1,950/ounce. Supporting gold price is hopes of continuing US stimulus measures, worsening virus situation and increased geopolitical tensions relating to Iran and increased US-China tensions,” Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
“ETF outflows however show wariness in investors. The general momentum is positive however hopes of Democrat win in Georgia and Fed's dovish stance has already been factored in and this may limit the gains.”
In the spot market, gold gained Rs 335 to Rs 50,969 per 10 gram in the national capital on Tuesday amid rupee depreciation. Silver also went up by Rs 382 to Rs 69,693 per kg.
Gold Rates - Spot & Futures (.995 purity) (MCX)
|Date||Gold Spot Price |
Rs/10 grms (AHMEDABAD)
|Gold Future Price |
Rs/10 grms Expiry: 05-Apr-2021
“We expect gold prices to trade firm for the day with support at $1,940 per ounce and resistance at $1,970 per ounce in the international market. Correspondingly, MCX Gold February futures have resistance at Rs 52,200 per 10 grams and support at Rs 51,100 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Gold was little changed in choppy trading on Wednesday, as markets awaited the outcome of the US Senate runoff elections in Georgia that will likely shape fiscal policy in the President-elect Joe Biden administration.
Spot gold was unchanged at $1,949.07 per ounce by 0242 GMT after hitting a near two-month peak at $1,954.97 earlier in the session. US gold futures eased 0.2 per cent at $1,951.20.
Silver shed 0.7 per cent to $27.39 an ounce. Platinum fell 1.4 per cent to $1,095.82, while palladium eased 1 per cent at $2,442.42.
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