Gold price trades above Rs 50K mark, silver rates at Rs 60,800

Gold, Silver prices in India on October 15: Gold price in India fell on Thursday, although trades above Rs 50K mark, tracking weak cues from global markets.

Gold October Futures on the Multi Commodity Exchange-traded Rs 141 lower at Rs 50,335 after hitting an intraday high and low of Rs 50,315 and Rs 50,445, respectively.

Silver September Futures traded at Rs 61,121 per kg today, falling Rs 482 over the last close of Rs 61,603 per kg.

Overseas, gold price fell below the key $1,900/ounce psychological level amid faded hopes of coronavirus relief package in the US.

Both equity and commodity markets turned negative since yesterday, as investors lost hopes after Treasury Secretary dampened expectations of reaching a US fiscal stimulus before the presidential election in November. Treasury Secretary Steven Mnuchin said around midday that getting a deal done before the election would be difficult, adding that both sides were still far apart on certain issues. He also noted, however, that Democrats and Republicans are making progress in some areas.

Comex gold was 0.1% lower at $1,897 today, while US gold futures were down 0.4% to $1,899. Spot gold fell 0.2% to $1,896.26 per ounce, after rising as much as 1.1%  in the earlier session. Silver fell 0.9% to $24.07 per ounce.

The unprecedented increase in fresh COVID-19 cases and rising worries about the sluggish pace of economic recovery due to the pandemic have boosted the safe-haven demand by 25% this year.

Worldwide, there were 387 lakh confirmed cases and 10.96 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.

The dollar index was up 0.1% against rivals, on the back of renewed questions over a COVID-19 vaccine.

Moreover, major central bankers calling for renewed government spending to recover major economies from the pandemic-induced recession has driven investors to the bullion, which is considered as a hedge against inflation and currency debasement.

On the retail front, physical 24-carat bullion per 10 gram in the national capital traded at Rs 53,735. Price of 24-carat gold stood at Rs 52,800 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold fell back to Rs 50,610 and 52,760, respectively.

Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said, "On Wednesday, Spot Gold gained over 0.5 percent to close at $1900.9 per ounce and Spot silver ended higher by 0.46 percent to close at $24.3 per ounce as lower Dollar and worries over global economic recovery boosted appeal for the safe haven, Gold. Gold revived after posting negative gains earlier in the week as political uncertainty in U.S. ahead of the elections and easing Dollar elevated the prices. Moreover, U.S. House Speaker Nancy Pelos kept the hope for a possible agreement over the new virus relief bill alive which underpinned the yellow metal prices.

"The gains were limited as China's economy continued to expand in September 20 reflecting the improvement in overseas demand and a balanced recovery boosted the risk appetite amongst investors. Moreover, the International Monetary Fund expressing worries over the outlook for many emerging markets as the virus continued to spread limited the losses for the safe haven, Gold. Uncertainties over the additional corona relief fund by U.S. underpinned the Dollar which might weigh on Gold prices. On the MCX, gold prices are expected to trade lower in today's session."

On gold's technical outlook, he added, "As for today traders can go for sell in gold at Rs 50,600 levels with the stop loss of Rs 51100 levels for the target of 49500 levels. They can also go for sell  in Silver at Rs 61,200 levels, with the stop loss of 61,700 levels and for the target of 59,800 levels."

Gold price trades above Rs 50K mark, silver rates at Rs 60,700

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