Gold price trades above Rs 50K mark; silver at Rs 62,500

Gold, Silver prices in India on October 23: Gold price traded flat with a positive bias on Friday following positive cues from overseas. While gold futures in India managed to hold the Rs 50K mark, the safe-haven asset overseas traded near $1,900 mark amid rising coronavirus cases worldwide.

Gold October Futures on the Multi Commodity Exchange traded Rs 28 higher at Rs 50,795 after hitting an intraday high and low of Rs 50,575 and Rs 50,877, respectively.

Silver September Futures traded at Rs 62,515 per kg today, falling Rs 100 over the last close of Rs 62,615 per kg.

In global markets, Spot gold futures rose 0.1% to $1,906.29 per ounce and US gold futures rose 0.2% to $1,907.50 per ounce. Silver fell 0.6% to $24.60 an ounce.

With less than two weeks to go before the US presidential election, gold prices have consolidated around $1,900 mark, amid delay in additional economic relief package in the US.

Gold, viewed as a hedge against inflation and currency debasement has risen 0.4% this week, while silver has gained 1.8% in the same period.

Concerns over the economic impact of rising coronavirus infections in many countries have driven investment inflows into safe-haven assets like gold. Globally, there were 419.9 lakh confirmed cases and 11.4 lakh deaths from COVID-19 outbreak. In India, COVID-19 caseload breached the 77-lakh mark and the death toll from COVID-19 infections rose to 1.17 lakh, as of today.

Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," Lower interest rates and an enormous amount of liquidity infusion by global central banks helped gold gain over 25 per cent in 2020 as it is considered as a hedge against inflation and currency debasement. Prices also found some support as reinforcement of the pandemic triggered curbs in Europe and global cases surpassing 40.8 million boosted the appeal for the safe haven, Gold."

On gold's outlook, he added, "No major signs of a deal over the additional corona relief fund by the U.S. before the upcoming elections might weigh on the safe haven, Gold. On the MCX, gold prices are expected to trade higher in today's session."

"A recovery in the US dollar and doubts over US fiscal stimulus measures before the presidential election are likely to weigh gold prices further.  However, resurging pandemic cases and unsolved US-China trade tensions may limit major selling pressure on prices," said Hareesh V, Head of Commodity research from Geojit Financial.

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