NEW DELHI: Gold and silver futures prices in the domestic market slipped on Wednesday as traders booked profits but the losses were checked by grim macro data and US stimulus.
US Congress passed a massive Covid-19 aid and government funding package overnight aimed at bolstering the nation’s battered economy. Data on Tuesday showed US consumer confidence dropped to a four-month low in December, while US existing home sales also fell in November.
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 down 0.04 per cent or Rs 21 at Rs 50,060 per 10 grams. Silver futures added 0.28 per cent or Rs 184 to Rs 66,687 per kg.
In the spot market, Gold prices fell Rs 243 to Rs 49,653 per 10 gram in the national capital on Tuesday, reflecting the weakness in global price of the precious metal, according to HDFC Securities. Silver prices also declined Rs 216 to Rs 67,177 per kilogram.
Globally, gold prices edged higher on Wednesday as grim US consumer and housing data bolstered hopes for further stimulus to support an economic recovery from the pandemic-induced slump.
Spot gold rose 0.2 per cent to $1,863.83 per ounce by 0027 GMT, while US gold futures fell 0.1 per cent to $1,868.10.
SPDR Gold Trust the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.20 per cent to 1,167.53 tonnes on Tuesday from 1,169.86 tonnes on Monday.
Silver rose 1 per cent to $25.38 an ounce. Platinum rose 0.5 per cent to $1,007.11 and palladium gained 0.2 per cent to $2,318.12.