Gold spurts to 50 day high amid high-tension and uncertain US Election

Source :Sify
Author :Finance Desk
Last Updated: Fri, Nov 6th, 2020, 04:32:01hrs
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Gold-David-Gray-AFP

Mumbai | Chennai | New Delhi: Gold rates across India made a minor margin from a day ago across major Indian cities. The momentum on the MCX Futures for December explained the market momentum - MCX rocketed by 1.67 percent or 850 points to trade at 51,670 per ten grams for Thursday.  

In spot markets, Gold shot off to $1,948.30 per ounce -- a 49 day high.  

The last reported London Bullion Market Association Rate for Gold stands at $1,900.15, well below the spot threshold indicating where the momentum could head to on Friday.

In India, the Gold rates quoted by jewellers moved marginally despite a $2 improvement in LBMA rates. Most jewellers across India price their rates depending on association rates and the LBMA rate. The association rates quoted across South and West India remained marginally higher than the one quoted for Wednesday.  

Jewellers also quoted a marginal higher rate owing to optimism linked to the Dhanteras, Diwali and festive season. Reports said jewellers could be encouraged with the improvement in net bullion imports for the third quarter.  

On Thursday, the World Gold Council in a report observed Gold ETF activity rising up moderately by 20.3 tonnes, a marginal improvement considering the Gold ETF activity during Jul-Aug'2020.  

The movement on Thursday is attributed to the US election related tensions. While initial reports claimed Democratic candidate Joe Biden as having a lead in several constituencies. However, the current President Donald Trump has hinted of fighting the outcome. Besides an uncertain election, Gold rates also swung owing to the US Dollar which reported a decline for Thursday.  

As of the time of reporting this story, results for several swing-states was still awaited and Joe Biden was six short of the 270 mark. 

In India, the trade is mostly focused around the election and the strength of the Rupee. The Rupee lost by a few points during Wednesday and inched dangerously closer to the 75 per dollar mark. In the trade on Thursday, the Rupee clawed back to levels of 74.29.  

For latest and real-time market rates, visit Sify Gold.  

Unless spot markets are assured something on the US elections, the opening rates on Friday even in India may be significantly higher.  

Meanwhile, Silver, the poor man's Gold, romped off to a high. On the MCX Silver sizzled by nearly 4 percent to quote Rs 63,800 per kilo. In retail markets across India, jewellers quoted Silver rates in a range of Rs 62,380 to Rs 67,500 per kilo.

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