Gold price falls after 3 days; silver rates at Rs 62,500

Gold, Silver prices in India on October 13: Gold price fell on Tuesday after rising consecutively for three sessions following weak global cues. However, the yellow metal continued to trade above Rs 51K mark in India.

Gold October Futures on the Multi Commodity Exchange traded Rs 280 lower at Rs 50,820 after hitting an intraday high and low of Rs 51,107 and Rs 50,760, respectively.

Silver September Futures traded at Rs 62,417 per kg today, falling Rs 680 over the last close of Rs 63,098 per kg.

Gold price eased today overseas amid a slight rebound in dollar, although losses were capped as investors clung to renewed hopes of coronavirus relief package in the US.

Gold price rises for third day, Silver rates at Rs 64,500

Overseas, Comex gold traded flat $1,910 aided by hopes of another fiscal stimulus, while US gold futures were down 0.3% to $1,923. Spot gold dipped 0.6% to $1,910.76 per ounce, after hitting its highest level since Sept. 21 at $1,932.96 on Friday. Silver fell 1.5% to $24.73 per ounce.

Gold has gained 26% in 2020 as major central bankers have called for renewed government spending to recover major economies from the coronavirus pandemic-induced recession.

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The dollar index was up 0.1% against rivals, while Asian shares were weaker. US dollar was mostly unchanged as the focus changed towards US stimulus package.

Traders said the yellow metal witnessed profit booking as expectation of an inadequate US stimulus affected bullion's shine. Uncertainty around US elections and the possibility of additional stimulus has driven investors last week to the bullion, considered as a hedge against inflation and currency debasement.

U.S. Senate Republicans said they will go along with what President Donald Trump wants in coronavirus relief legislation, a White House spokeswoman reportedly said on Monday.

Moreover, the recent spike in coronavirus cases across major economies added to the uncertainty over the global economic recovery. British Prime Minister Boris Johnson on Monday announced a new system of restrictions on parts of England. Lawmakers will vote on the move on Tuesday.

Worldwide, there were 380 lakh confirmed cases and 10.85 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 71-lakh mark and the death toll from COVID-19 infections rose to 10.9 lakh, as of today.

On the retail front, physical 24-carat bullion per 10 gram in the national capital gained to Rs 54,350. Price of 24-carat gold stood at Rs 53,320 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold fell back to Rs 50,830 and 53,280, respectively.