Gold prices today slip further on strong dollar, US stimulus plans

NEW DELHI: Gold and silver prices continued their decline on Thursday, following the trend in the international market, as US lawmakers prepared to come out with a massive stimulus plan while the dollar continued to gain strength.

As much as $380 billion from the US Congress’ last big coronavirus aid package is unused and could help households and businesses if lawmakers approve, Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin said on Thursday.

Meanwhile, democrats in the US House of Representatives are working on a $2.2 trillion coronavirus package that could be voted on next week.

Gold futures on MCX were down 0.27 per cent or Rs 133 at Rs 49,771 per 10 grams. Silver futures fell 0.77 per cent or Rs 459 to Rs 59,170 per kg.

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In the sport market, gold price fell for the fourth consecutive day on Thursday, declining by Rs 485 to Rs 50,418 per 10 grams in the national capital amid weak international trends, according to HDFC Securities. Silver also tumbled by Rs 2,081 to Rs 58,099 per kilogram.

Is gold’s rally over? Here are five key charts to watch

Temporary blip?

Gold’s slump this week is forcing investors to ask whether the haven asset is taking a breather or facing an even sharper decline.

Unprecedented global stimulus, negative real rates and a weakening dollar pushed bullion to a record high above $2,075 an ounce in early August. While some banks, including Goldman Sachs Group Inc. and Bank of America Corp., forecast even higher prices, a resurgent dollar has seen gold give up some of its gains.

Is this merely a temporary setback for the precious metal? Here are five charts that provide hints as to where gold goes next: (By Eddie Spence)

Globally, gold inched lower pressured by a firm dollar, and was on track for its worst week in over a month.

Spot gold fell 0.2 per cent to $1,864.47 per ounce by 0113 GMT. Prices are down 4.4 per cent so far for the week. US gold futures were down 0.4 per cent to $1,870.30.

The dollar index is up 1.5 per cent for the week, its best since early-April. A firmer dollar makes bullion more expensive for holders of other currencies.

The number of Americans filing new claims for unemployment benefits unexpectedly increased last week, supporting views the economic recovery was running out of steam.

China’s monthly net gold imports via Hong Kong edged lower in August, data showed, although a slight improvement in domestic demand pushed total imports to a five-month high.

Silver fell 1.1 per cent to $22.95 per ounce, platinum was down 0.3 per cent, to $846.72 and palladium was flat at $2,226.44.





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