NEW DELHI: Gold and silver futures prices in the domestic market climbed on Tuesday as agreement on the US stimulus package lifted the appetite for bullion.
A majority of the US House of Representatives voted to move a $900 billion coronavirus aid bill struck by Congressional leaders for a vote on passage on Monday evening. Economists expect the package to support the pandemic-ravaged economy and set it up for a stronger recovery next year as vaccines become more widely available.
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 0.11 per cent or Rs 53 at Rs 50,469 per 10 grams. Silver futures added 0.74 per cent or Rs 512 to Rs 69,530 per kg.
In the spot market, Gold prices in the national capital jumped Rs 496 to Rs 50,297 per 10 gram on Monday in line with rally in international precious metal prices and rupee depreciation, according to HDFC Securities. Silver also gained Rs 2,249 to Rs 69,477 per kg.
Globally, gold edged higher on Tuesday as investors focussed on the US fiscal stimulus package that is set to be voted on by Congress, with fresh restrictions forced by a new coronavirus strain in the UK providing further support to the metal.
Spot gold rose 0.1 per cent to $1,878.72 per ounce by 0038 GMT. US gold futures rose 0.1 per cent to $1,884.60 per ounce.
Holdings in SPDR’s Gold Trust , the world’s largest gold-backed exchange-traded fund, rose 0.2 per cent to 1,169.86 tonnes on Monday from 1,167.82 tonnes on Friday.
Silver rose 0.2 per cent to $26.23 an ounce. Platinum fell 0.5 per cent to $1,004.51 and palladium gained 0.5 per cent to $2,319.46.