Gold rate slips further, nears Rs 49,500 level

NEW DELHI: Gold and silver prices declined further in Monday's session as hopes of a US stimulus package grew. Traders also took positions before the RBI monetary policy and the US presidential election debate.

Investors looked for any signs of further stimulus after US House Speaker Nancy Pelosi said on Sunday a deal could be reached with the White House on a coronavirus relief package and that talks were continuing.

Gold futures on MCX were down 0.23 per cent or Rs 116 at Rs 49,543 per 10 grams. Silver futures dropped 0.99 per cent or Rs 587 to Rs 58,440 per kg.



In the sport market, gold prices rose by Rs 324 to Rs 50,824 per 10 gram in the national capital on Friday, halting its four-day decline on recovery in international price of the precious metal, according to HDFC Securities. Silver prices also bounced back and gained Rs 2,124 to Rs 60,536 per kilogram

Globally, gold steadied as the dollar rally took a pause, while traders were on the sidelines as political uncertainty built ahead of the first presidential election debate between the US President Donald Trump and his Democratic rival Joe Biden this week.

Spot gold was little changed at $1,860.19 per ounce by 0107 GMT. US gold futures were down 0.1 per cent at $1,864.50.

The dollar index was down 0.1 per cent against rivals, slightly off a two-month peak hit in the last session. A firmer dollar makes bullion more expensive for holders of other currencies.

Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to September 22, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.02 per cent to 1,266.84 tonnes on Friday.

Physical gold demand limped higher in top Asian hubs last week, with dealers in India easing discounts to the lowest level in six weeks, as a drop in prices saw a little interest return in the precious metal.

Silver rose 0.3 per cent to $22.93 per ounce, platinum gained 0.4 per cent to $850.74 and palladium was up 0.1 per cent to $2,217.87.