Gold rate slips below Rs 52,000 mark on hopes of Covid treatment

NEW DELHI: Gold and silver saw profit booking in early trade on Monday as investors waited for further triggers and a speech by US Fed chair Jeremy Powell that may give a clue on monetary policy going ahead. Meanwhile, coronavirus treatment hopes also lifted risk sentiments.

The U.S. Food & Drug Administration on Sunday said it authorised the use of blood plasma from patients who have recovered from Covid-19 as a treatment for the disease.

Gold futures on MCX were down 0.29 per cent or Rs 151 at Rs 51,865 per 10 grams. Silver futures dipped 1.05 per cent or Rs 701 to Rs 66,366 per kg.

Gold prices declined by Rs 94 to Rs 52,990 per 10 gram in the national capital on Friday following selling pressure in the international market, according to HDFC Securities. Silver prices, however, rose by Rs 782 to Rs 69,262 per kg.

Globally, gold slipped on Monday as the dollar steadied near a more than one-week high, while investors awaited Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole later this week for clarity on the direction of U.S. monetary policy.

Spot gold was down 0.3 per cent to $1,933.37 per ounce by 0046 GMT after hitting a one-week low of $1,910.99 on Friday. US gold futures fell 0.4 per cent to $1,910.10.

Top Democrats and Republicans blamed each other for stalled talks on Covid-19 aid legislation on Sunday, a day after the House of Representatives approved $25 billion in new funds for the U.S. Postal Service.

Speculators raised their bullish positions in COMEX gold and silver contracts in the week to Aug. 18, the U.S. Commodity Futures Trading Commission said on Friday.

Physical gold dealers in India last week offered the highest discounts in more than a month and a half, as buyers stayed away even as more bullion flowed in from the UAE.

Silver dropped 0.6 per cent to $26.54 per ounce, platinum slipped 0.5 per cent to $913.78, and palladium fell 0.4 per cent to $2,173.32.