Gold rate slips below Rs 50,000; here's why

NEW DELHI: Gold and silver prices were trading with minor cuts in Thursday's session bucking the trend in international markets amid renewed hopes of a stimulus package, albeit smaller than previously talked about.

After having shut down the deal's negotiations on Tuesday, Donald Trump wrote on Twitter that Congress should pass money for airlines, small businesses, and stimulus checks of $1,200 for individuals.

Gold futures on MCX were down 0.15 per cent or Rs 77 at Rs 49,871 per 10 grams. Silver futures dipped 0.23 per cent or Rs 139 to Rs 60,280 per kg.



In the spot market, gold rate plunged Rs 694 to Rs 51,215 per 10 grams in the national capital on Wednesday amid rupee appreciation, according to HDFC Securities. Silver, however, rose Rs 126 to Rs 63,427 per kg.

Globally, gold prices were steady as renewed hopes for more US stimulus kept the bullion afloat, with investors eyeing the weekly jobless claims data to further gauge the health of the world's largest economy.

Spot gold was little changed at $1,886.69 per ounce by 0100 GMT, having risen as much as 1.1 per cent in the previous session. US gold futures were flat at $1,889.80. The dollar index was steady against rivals after declining overnight.

US Federal Reserve policymakers split over how to apply a new strategy for monetary policy at their September meeting, and, amid growing doubts about the path of the economy, offered no clear sense of their next steps to offset the coronavirus recession, minutes from their September meeting showed.

Silver was steady at $23.83 per ounce, platinum was up 0.1 per cent at $865.21, while palladium was flat at $2,352.18.