Gold prices slip amid caution over US stimulus

NEW DELHI: Gold and silver prices were trading with cuts in Tuesday's session tracking the trend in international markets as caution set in ahead of the deadline to reach an agreement on a new US coronavirus stimulus.

US House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" about a fresh aid package, Pelosi's spokesman, Drew Hammill, wrote on Twitter. Pelosi hopes that by the end of Tuesday there will be "clarity" on whether a coronavirus stimulus bill can be passed before the Nov. 3 elections, Hammill wrote.

Gold futures on MCX were down 0.23 per cent or Rs 115 at Rs 50,572 per 10 grams. Silver futures fell 0.34 per cent or Rs 210 to Rs 61,885 per kg.



In the spot market, Gold in the national capital rose Rs 182 to Rs 51,740 per 10 grams on Monday, following gains in global precious metal prices, according to HDFC Securities. Silver also jumped Rs 805 to Rs 63,714 per kilogram.

Globally, gold prices also inched lower. Spot gold fell 0.1 per cent to $1,903.16 per ounce by 0055 GMT. U.S. gold futures were down 0.3 per cent at $1,906.50.

The US economy is rebounding strongly after taking a big hit because of the pandemic, but it may be another year before the economy returns to pre-crisis levels and take even longer for the labor market to recoup lost ground, Federal Reserve Vice Chair Richard Clarida said on Monday.

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.02 per cent to 1,272.85 tonnes on Monday from 1,272.56 tonnes on Friday.

Silver fell 0.3 per cent to $24.43 per ounce, platinum and palladium were 0.1 per cent higher at $856.85 and $2,345.37, respectively.