US Treasury Secretary Steve Mnuchin said he and House of Representatives Speaker Nancy Pelosi were “far apart” on another coronavirus economic relief package, and that a deal would be hard to reach before the November 3 elections.
Gold futures on MCX were down 0.31 per cent or Rs 157 at Rs 50,385 per 10 grams. Silver futures dipped 0.95 per cent or Rs 585 to Rs 61,018 per kg.
In the spot market, gold prices declined for the second consecutive day in the national capital on Wednesday, falling Rs 631 to Rs 51,367 per 10 gram amid rupee appreciation, according to HDFC Securities. Silver prices also tanked Rs 1,681 to Rs 62,158 per kilogram.
Globally, gold prices fell weighed by a steady dollar and fading chances of a new US fiscal stimulus package being finalised before the November elections.
Spot gold fell 0.4 per cent to $1,893.17 per ounce by 0108 GMT. US gold futures were steady at $1,896.60. The dollar index drew support from rising coronavirus cases and scant progress towards the US stimulus deal.
With surging cases, European nations are closing schools, cancelling surgeries and enlisting student medics as overwhelmed authorities face the nightmare scenario of a COVID-19 resurgence at the onset of winter.
The world’s mines will produce 3,368 tonnes of gold this year, down 4.6 per cent from 2019 and the lowest in 5 years, but high bullion prices will help to push up output by 8.8 per cent to a record 3,664 tonnes in 2021, consultancy Metals Focus said on Wednesday.
Silver fell 1 per cent to $24.05 per ounce, platinum eased 0.3 per cent to $854.59 per ounce, and palladium was down 0.1 per cent at $2,342.83.