Gold price trading above Rs 51K; silver rates at Rs 61,300

Gold, Silver prices in India on November 4: Gold prices crossed the key level of Rs 51K today amid uncertainty over results of US Presidential election and rise in coronavirus cases across the globe.

In a volatile trading session, Gold October Futures on the Multi Commodity Exchange fell by Rs 350 to trade at Rs 51,250, after yesterday's close of Rs 51,215.

Silver September Futures, traded Rs 1,350 lower at Rs 61,345 per kg today after they touched an intraday low of Rs 61,165 per kg.

Comex Gold traded flat at $1,899.80. Spot gold fell 0.6% to $1,896.44 per ounce, having earlier shed as much as 1%, while US futures fell 0.7% to $1,897.10. Silver fell 1.6% to $23.77.

This was on the back of strong dollar, that was up 0.7% against a basket of major currencies, making the bullion costlier for other currency holders. Pause in the outcome on any fresh stimulus out of US has also kept the demand for the yellow metal weak.

As per analysts, investors can anticipate gold to see volatile price swings today as US election results lead to market volatility. Gold prices traded around $1,900 mark overseas as investors watched the outcome of US elections.

Investors hoped a win by Joe Biden in the presidential race of the world's oldest democracy might lead to an additional economic stimulus for the coronavirus-hit economy. Although later, the polls from the US Presidential election suggested a tight race between the two contestants Joe Biden and President Donald Trump, with no clear winner yet in sight.

Gold, viewed as a hedge against inflation and currency debasement has risen over 25% this year, supported by unprecedented monetary stimulus from major central banks. Fresh rounds of coronavirus-induced lockdowns across Europe and the US have underpinned the need for more stimulus, to help recover from the sluggish pace of the global economy.

Worldwide, there were 478 lakh confirmed cases and 12.20 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 83-lakh mark and the death toll from COVID-19 infections rose to 1.23 lakh, as of today.

Commenting on Gold outlook, Hareesh V, Head of commodity research said, "Gold continues to be choppy ahead of the uncertain results of US presidential election and a volatile currency market. Meanwhile, hopes of more fiscal stimulus measures, escalating US-China trade tensions and rising new pandemic cases continues to offer lower-level support to the yellow metal."

Expressing views on the Spot gold's technical outlook, he added," Prices remain inside $1840-1920 an ounce levels and breaking any of the sides would suggest a fresh direction to the metal."

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