Gold prices in futures market in India dropped on Monday, extending losses to the third day. After a 25% gain last year, gold has remained volatile and directionless trade since start of the year. On MCX, February gold futures fell 0.15% to near one-month low of ₹49,067 per 10 gram while silver edged 0.24% lower to ₹66,479 per kg. Indian markets are closed today for a public holiday. The markets will resume trading on Wednesday.
In global markets, gold rates slipped on Tuesday, weighed down by concerns that the US stimulus package could be delayed. Spot gold was down 0.1% to $1,853.99 per ounce. Among other previous metals, silver was flat at $25.30 an ounce while platinum lost 0.6% to $1,091.40.
The US dollar was flat against an index of rivals. Republicans opposed US President Joe Biden’s $1.9 trillion pandemic relief proposal, they have called the proposal too expensive and pushed for a smaller plan targeting vaccine distribution. Gold is typically considered a hedge against inflation and currency debasement, likely from widespread stimulus.
Analysts say gold is likely to to remain supported at lower levels amid rising virus cases and growth concerns. Vaccine coverage won’t reach a point that would stop transmission of the virus in the foreseeable future, the World Health Organization said. United Nations Secretary-General Antonio Guterres said the world is risking more virus variations by not pushing for vaccines in developing nations.