Gold rate slips as Covid vaccine improves economic outlook

NEW DELHI: Gold and silver futures traded with cuts in morning trade on Wednesday against the trend in international markets as the successful development of Covid-19 vaccine improved business outlook.

The potential breakthrough in the race to develop a COVID-19 vaccine has left governments scrambling to meet the logistical challenge of distributing hundreds of millions of doses once it becomes available in coming months.

Gold futures on MCX were down 0.22 per cent or Rs 111 at Rs 50,390 per 10 grams. Silver futures dipped 0.40 per cent or Rs 253 to Rs 62,791 per kg.




In the spot market, gold prices tanked Rs 662 to Rs 50,338 per 10 gram in the national capital on Tuesday, according to HDFC Securities. Silver prices also tumbled Rs 1,431 to Rs 62,217 per kilogram.

Globally, gold prices edged higher on Wednesday supported by hopes of more US stimulus measures as surging coronavirus cases threaten to hamper economic recovery, although optimism over vaccine developments limited gains.

Spot gold rose 0.2 per cent to $1,879.31 per ounce by 0054 GMT. US gold futures were up 0.1 per cent at $1,878.70.

The dollar index was steady, while Asian shares extended gains on progress in coronavirus vaccine.

Silver rose 0.2 per cent to $24.26. Platinum fell 0.1 per cent to $881.98, while palladium gained 0.5 per cent to $2,465.36.