Gold price rises to 51K, silver rates reach Rs 62,400

Gold, Silver prices in India on November 5: Gold prices in Indian commodity market crossed the key level of Rs 51K on Thursday for the fourth straight session.

In volatile trade today, Gold October Futures on the Multi Commodity Exchange gained Rs 530 to trade at Rs 51,350, after yesterday's close of Rs 50,820.

Silver September Futures, traded Rs 1,055 points higher at Rs 62,445 per kg today after they touched an intraday low of Rs 62,711 per kg.

Gold, a commodity barometer of economic concern and growth, gained overseas on the back of weak dollar, amid expectation of Joe Biden's victory in the US Presidential elections and rise in coronavirus cases across the globe.

Spot gold rose 0.3% to $1,909.41 per ounce and US gold futures gained 0.7% to $1,909.80 per ounce. Comex gold climbed 0.41% to $1,902 per ounce. Gold price remained volatile as false claims by Donald Trump over victory baffled the investor sentiment.

Traders said investors hoped a win by challenger Joe Biden in the presidential race might result in an additional economic stimulus for the coronavirus-hit economy. However, developments in the US presidential race and supply glut fears weighed on prices sentiments. Gold tends to benefit from widespread stimulus measures as it is widely viewed as a hedge against inflation and currency debasement.

Gold fell yesterday as US election results hinted that Democrats may not be able to win, dashing hopes of a bigger stimulus.

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

The dollar index was trading 0.07 per cent down at 93.34 against a basket of six currencies, making the bullion cheaper for other currency holders.

Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said,"On Wednesday, Spot Gold prices fell about 0.3 per cent to close at $1903.2 per ounce uncertainties surrounding the U.S. elections result weighed on the yellow metal prices.

As the election process commenced, markets anticipate a slight edge towards Democrat Joe Biden winning the U.S. presidency which might open gates for larger U.S. stimulus. The losses for Gold were limited as it tends to benefit from stimulus infusion as it is considered as a hedge against inflation and currency debasement. Moreover, the alarming increase in the coronavirus cases around the globe clouded the global economic outlook. Many nations reinforced fresh lockdown which dented markets risk appetite and further supported Gold prices. Markets will have a keen watch on the outcome of the Federal Open Market Committee (FOMC).

As for today, traders can go for Buy in gold at Rs 51000 levels with the stop loss of Rs 50700 levels for the target of 51500 levels. They can also go for Buy in Silver at Rs 61,800 levels, with the stop loss of 61,300 levels and for the target of 62,700 levels."

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