NEW DELHI: Gold and silver futures prices in the domestic market slipped on Monday as the US started getting its first shipment of Covid-19 vaccines, lifting the spirit of investors who moved towards riskier assets.
The first shipments of Covid-19 vaccine began on Sunday, after a U.S. regulator approved Pfizer Inc and BioNTech SE’s vaccine. Meanwhile, the text of a $908 billion bipartisan relief plan is set to be released as early as Monday and will be split into two packages in a bid to win approval, reports indicated.
Gold tends to benefit from stimulus measures as it raises the prospect of inflation which bullion is used to hedge against.
Gold futures on Multi Commodity Exchange (MCX) were down 0.45 per cent or Rs 222 at Rs 49,102 per 10 grams. Silver futures dipped 0.49 per cent or Rs 310 to Rs 63,425 per kg.
In the spot market, gold prices declined Rs 102 to Rs 48,594 per 10 grams in the national capital on Friday, according to HDFC Securities. Silver dipped marginally by Rs 16 to Rs 62,734 per kg.
Globally, gold eased on Monday as the roll out of coronavirus vaccines in the United States lifted risk sentiment, offsetting support from hopes for more U.S. economic stimulus and a weaker dollar.
Spot gold fell 0.2 per cent to $1,834.94 per ounce by 0053 GMT, while U.S. gold futures eased 0.2 per cent to $1,840.70.
Holdings in SPDR’s Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.32 per cent to 1,175.99 tonnes on Friday from 1,179.78 tonnes on Thursday.
Hedge funds and money managers raised their bullish positions in COMEX gold and silver contracts in the week to Dec. 8, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Silver was little changed at $23.90 an ounce, while platinum gained 0.6 per cent to $1,015.03 and palladium rose 0.4 per cent to $2,327.57.