US President Joe Biden on Wednesday called for a sweeping use of government power to reshape the world’s largest economy and counter China’s rise in a $2 trillion-plus proposal that was met with swift Republican resistance.
Stimulus measures increase the chances of higher inflation and gold is often considered as a hedge against it.
Gold futures on MCX were up 0.11 per cent or Rs 49 at Rs 44,984 per 10 grams. Silver futures dipped 0.31 per cent or Rs 197 to Rs 63,617 per kg.
“Weighing on gold price is US economic optimism, vaccine progress, higher yields and lack of ETF buying. Supporting gold is retreat in the US dollar index from recent highs, mixed US economic data, rising virus cases and dovish central bank stance. Gold has bounced back after managing to hold above $1670/oz. However a sharp rise is unlikely until the US dollar corrects sharply,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, gold prices declined by Rs 49 to Rs 43,925 per 10 gram in the national capital on Wednesday reflecting overnight selling in global precious metal prices. Silver also registered a fall of Rs 331 to Rs 62,441 per kg.
Global markets
Spot gold was up 0.2 per cent at $1,710.28 per ounce by 0156 GM, though it was set for its second straight weekly fall. US gold futures fell 0.3 per cent to $1,709.80 per ounce.
Silver dipped 0.1 per cent to $24.36, while platinum was down 0.3 per cent at $1,184.14 and palladium slipped 0.1 per cent to $2,616.55.
