Gold rate edges higher, tops Rs 51,000 as hopes of early US stimulus increase

NEW DELHI: Gold and silver prices were trading with gains in Wednesday's session tracking the trend in international markets as the probability of an early economic stimulus from the US increased.

The White House and Democrats in the US Congress moved closer to agreement on a fresh coronavirus aid as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party.

Gold is considered a hedge against inflation and currency debasement amid the unprecedented levels of global stimulus to ease the economic blow from the pandemic.

Gold futures on MCX were up 0.27 per cent or Rs 137 at Rs 51,047 per 10 grams. Silver futures rose 0.60 per cent or Rs 381 to Rs 63,505 per kg.



In the spot market, gold prices in the national capital went down by Rs 268 to Rs 50,860 per 10 grams on Tuesday amid a decline in international prices of the precious metal, according to HDFC Securities. Silver also witnessed muted trend and tanked Rs 1,126 to Rs 62,189 per kilogram.

Globally, gold prices rose, propped up by a softer dollar and increasing hopes for a new US coronavirus relief package ahead of the November elections.

Spot gold rose 0.3 per cent to $1,912.11 per ounce by 0039 GMT. US gold futures were steady at $1,916.40.

Switzerland's gold exports to China and India dwindled in September, with the country instead importing record volumes of bullion from Hong Kong and sending metal to Britain, customs data showed.

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.23 per cent to 1,269.93 tonnes on Tuesday.

Silver gained 0.7 per cent to $24.82 per ounce, platinum rose 0.3 per cent to $873.89. Palladium was up 0.2 per cent at $2,402.64.