NEW DELHI: Gold and silver futures prices in the domestic market climbed on Monday as agreement on the US stimulus package lifted the appetite for bullion.
US congressional leaders have reached agreement on a $900 billion package to provide the first new aid in months to the coronavirus-hit economy, the Senate’s top Republican and Democrat said on Sunday, with votes likely on Monday.
Gold tends to benefit from stimulus measures as it raises the prospect of inflation which bullion is used to hedge against.
Gold futures on MCX were up 0.74 per cent or Rs 370 at Rs 50,674 per 10 grams. Silver futures added 2.87 per cent or Rs 1,949 to Rs 69,856 per kg.
In the spot market, gold prices rose marginally by Rs 21 to Rs 49,644 per 10 gram in the national capital on Friday, reflecting overnight gains in the international market, according to HDFC Securities. Silver prices, on the other hand, declined Rs 259 to Rs 66,784 per kilogram.
Globally, Gold prices firmed on Monday as investors cheered news that a U.S. fiscal stimulus deal was likely to be passed, although gains were capped by a stronger dollar.
Spot gold rose 0.4 per cent to $1,888.76 per ounce by 0048 GMT. U.S. gold futures firmed 0.2 per cent to $1,892.80.
The U.S. dollar rose 0.2 per cent against its major peers, reducing bullion’s appeal to holders of other currencies.
Physical gold in India was sold at a discount last week for the first time in six weeks as a rebound in local prices squeezed demand, while purchases slowed in other Asian hubs ahead of the year-end holidays.
Russia’s gold reserves stood at 73.9 million troy ounces as of the start of December, the central bank said on Friday.
Hedge funds and money managers raised their bullish positions in COMEX gold and silver contracts in the week to Dec. 15, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Silver rose 0.9 per cent to $26.01 per ounce. Platinum was up 0.1 per cent at $1,036.75 and palladium fell 0.1 per cent to $2,358.71.