Gold Price In India: Domestic gold futures dropped on Thursday as the US dollar strengthened, making the yellow metal more expensive for investors dealing in other currencies. Gold futures trading on Multi Commodity Exchange (MCX) - due for a December 4 expiry - declined by Rs 280 - or 0.55 per cent - to Rs 51,053 at the weakest level of the day. MCX silver futures lost 1.36 per cent to Rs 62,766 during the session. (Also Read: Is Silver The New Gold?)
In the international market, gold eased as the dollar recovered some lost ground after doubts emerged on whether US lawmakers could reach agreement on a new coronavirus aid package before the November presidential election.
Spot gold trading on Comex declined as much as 0.88 per cent to $1,912.60 per ounce, and silver fell 1.86 per cent to $24.77 per ounce. (Also Read: Gold "Dream Run" May Continue: Analysts)
The dollar index - which measures the greenback against six peers - gained as much as 0.32 per cent on Thursday. The rupee closed marginally higher at 73.53 against the US currency.
Domestic spot gold opened at Rs 51,312 per 10 grams on Thursday, and silver at Rs 62,720 per kilogram, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
What Analysts Say
"Gold rose as high as $1,936/oz in intraday trade yesterday but failed to break past the recent high of $1,939.4/oz and has corrected. Gold remains choppy as market players continue to assess feasibility of the US stimulus deal as well as the UK-EU Brexit deal," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"A general bias however remains on the upside amid increasing challenges to the global economy," he added.