Gold prices today decline on vaccine optimism, silver weakens as well

NEW DELHI: Gold and silver futures for December supply had been buying and selling as much as half-a-per cent decrease on Wednesday on lowered secure haven attraction, as hopes of a Covid vaccine outweighed considerations over a short-term rise in Covid instances globally.

Gold futures had been down 0.39 per cent at Rs 50,570 per 10 grams. Gold prices are off current highs of Rs 56,379. Silver futures for December supply had been buying and selling 0.55 per cent decrease at Rs 62,902 per kg.

“Bullion counters may continue to trade with bearish bias where gold may test Rs 50,400 and facing resistance near Rs 51,009. Silver may trade with higher volatility,” SMC Global stated in a be aware.

Several US states started proscribing gatherings and mandating face-coverings after greater than 70,000 Americans had been hospitalised for therapy of COVID-19 as of Monday, in keeping with a Reuters tally of public well being figures.

The US Fed Federal Reserve Chair Jerome Powell on Tuesday stated that the nationwide surge in confirmed coronavirus might gradual the economic system within the months forward by discouraging shoppers from spending. “We’re seeing states start to impose some exercise restrictions,” Powell stated in an internet dialogue with the Bay Area Council, a San Francisco-based enterprise group.

Data launched in a single day confirmed US retail gross sales rising mere 0.3 per cent in October, the smallest acquire because the restoration began in May, after rising 1.6 per cent in September.

That stated, hopes {that a} Covid vaccine might be out by the tip of yr saved the sentiment muted on bullion counters.

US-based Moderna Inc just lately stated its experimental vaccine was 94.5 per cent efficient in stopping Covid-19 primarily based on interim knowledge from a late-stage medical trial. Moderna is the second US firm in per week to report outcomes that far exceed expectations, Agencies reported.

Globally, gold prices edged decrease resulting from optimism over a possible covid-19 vaccine, however considerations over the financial influence from the resurgence of coronavirus instances in america restricted their decline. Spot gold fell 0.1% to $1,877.39 per ounce by 0344 GMT, whereas U.S. gold futures had been down 0.5% at $1,875.30.