Gold price rally halts after 6 sessions; silver trades near record high

Gold, Silver price today: Gold prices in Indian commodity market eased on profit booking, after hitting an all-time high of Rs 52,750 per 10 gm, tracking weak trend from overseas amid rising concerns of uncertainties over the additional stimulus package in the US. However, rising coronavirus cases and ongoing tensions between the US and China helped the yellow metal stay in demand.

After 6 consecutive bullish sessions, Gold futures on Multi Commodity Exchange were trading Rs 70 higher at Rs 52,521 per 10 gm against the previous close of Rs 52,591 per 10 gm. Earlier today, Gold August Futures touched an intraday as well as an all-time high of Rs 52,750 and a low of Rs 52,478 today, after opening at Rs 52,550 per 10 gm.

Silver Futures were trading Rs 68 higher at 65,075 per kg today, after hitting a lifetime high of Rs 67,560 yesterday.

Gold price scales fresh all-time high, silver hits Rs 67,560

Gold traded lower in overseas markets as political differences emerged over the $1 trillion fiscal rescue package by the US. The Democrats are pressing for a larger spending commitment, while President Donald Trump also said he didn't like elements of the Republican plan, adding to the sense of confusion.

Republicans' $1 trillion proposal includes cutting a weekly $600 unemployment benefit, which expires on Friday, to $200 just as cracks emerge in the economic rebound.

Overseas, gold prices pulled back as much as 3.7% later in the session from an all-time high of $1,980.57 per ounce reached earlier. Gold is up over $125 per ounce in little more than a week.

An impasse in US economic revival stimulus negotiations led to a recovery in the dollar index against a basket of six currencies. US President Donald Trump on Tuesday said he did not support everything in a $1 trillion Senate Republican coronavirus relief proposal, but indicated that talks were continuing. The yellow metal also saw some reluctance to move further ahead of the FOMC rate decision later today.

Concerns over the economic impact of rising coronavirus infections in many countries, especially in the two largest economies-US and China have driven investment inflows into safe-haven assets like gold.

Geojit Financial in its daily report said, "Gold is likely to correct to $1920 initially and later to $1880, if unable to move past $1980 intraday bias. However, an unexpected drop below $1860 would negate the buying sentiments and take prices further lower. For MCX Gold futures, the brokerage expects resistance at 52,950 and support at 50,710."

For MCX Silver Aug futures, the brokerage expects resistance at 66600/74000 and support at 56400.

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