Gold prices climb over Rs 51,000 amid waning stimulus hopes

NEW DELHI: Gold and silver were trading with gains on Monday against the trend in international markets amid waning stimulus hopes after talks ran into resistance. But a limited stimulus may still come out.

The Trump administration on Sunday called on Congress to pass a stripped-down COVID-19 relief bill using leftover funds from an expired small business loan program as negotiations on a broader package ran into resistance.

Gold futures on Multi Commodity Exchange (MCX) were up 0.39 per cent or Rs 197 at Rs 51,014 per 10 grams. Silver futures advanced 1.34 per cent or Rs 841 to Rs 63,715 per kg.


In the spot market, gold prices rose Rs 236 to Rs 51,558 per 10 gram in the national capital on Friday following a positive trend in the international market, according to HDFC Securities. Silver prices also jumped Rs 376 to Rs 62,775 per kilogram.

Globally, Gold prices edged lower on Monday, after hitting a three-week high earlier in the session, as the dollar firmed and talks over a new US stimulus package ran into resistance.

Spot gold fell 0.2 per cent to $1,925.29 per ounce by 0046 GMT, after hitting its highest level since Sept. 21 at $1,932.96 earlier in the session. US gold futures were up 0.3 per cent at $1,932.70.

The dollar index was up 0.1 per cent against rivals, making gold more expensive for holders of other currencies.

US President Donald Trump said on Sunday he had fully recovered from COVID-19 and was not an infection risk for others.



Speculators increased their bullish positions in COMEX gold and cut them in silver contracts in the week to Oct. 6, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Physical gold was sold at a premium in India last week for the first time since mid-August as jewellers stocked up, hoping key festivals would bring customers back to stores.

Silver eased 0.4 per cent to $25.02 per ounce, platinum fell 1 per cent to $876.80, and palladium was down 0.2 per cent to $2,435.35.