Gold Price Today: Domestic Gold Futures Jump By Over Rs 800 To Reclaim Rs 51,650 Mark As Dollar Eases
Gold Price In India: Domestic gold futures registered sharp gains on Thursday amid weakness in the US dollar, which made the yellow metal cheaper for investors dealing in other currencies. Multi Commodity Exchange gold futures - due for a December 4 expiry - gained by Rs 846 - or 1.66 per cent - to settle at Rs 51,666 for the day. Silver futures followed suit, appreciating by Rs 2,325 or - 3.79 per cent - to close at Rs 63,714. (Also Read: Is Silver The New Gold?)
The likelihood of bigger economic support measures as Joe Biden inched closer to the Oval Office going into the final stretch of the US elections, along with rising COVID-19 cases around the globe, supported gold, say analysts.
Comex gold futures were last seen trading 1.82 per cent higher at $1,930.80 per ounce, while silver futures were up 4.28 per cent at $24.92 per ounce.
The dollar index - which gauges the greenback against six peers - declined 0.81 per cent to a one-week low. That strengthened the rupee by 36 paise - or 0.48 per cent - to 74.38 against the US currency.
The dollar is often viewed as a rival safe-haven asset to gold.
Domestic spot gold closed at Rs 51,532 per 10 grams on Thursday, and silver at Rs 62,799 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA). The bullion market remained shut on Friday for a holiday.
What Analysts Say
"Gold trades higher as the possibility of contested election in the US has increased its safe-haven appeal. Mixed US economic data, rising coronavirus cases and hopes of additional stimulus measures has also lent support. However, exchange traded fund outflows and a firmer US dollar are weighing on price," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Gold may witness choppy trade until US elections results are clear but general bias may be on the upside on hopes of additional measures."