The return of US President Donald Trump from the hospital after Covid-19 treatment resulted in huge buying sentiment in equities markets. Tracking global cues, even Sensex and Nifty traded on a bullish note on Tuesday. However, this led to lacklustre demand in commodities like gold and silver. Notably, dollar cushioned the losses in gold and silver, as the commodities continued to trade on a subdued level.
At around 11.18 am, gold futures for February 2021 delivery, was trading at Rs50,770 up merely 0.07%. While gold futures for December 2020 delivery, was performing in red at Rs50,624.
Meanwhile, silver futures for December 2020 delivery, was trading at Rs61,908 down 0.05%.
The market is still in a bit of a risk-on mood right now and that’s tempering gold, said Stephen Innes, chief market strategist at AxiCorp in a Reuters report.
Innes added in the report that there’s a bit of uncertainty kicking in mostly over president Trump’s recovery and on what that’s going to do to polling numbers.
Spot gold on Tuesday, dropped by 0.1% to $1,911.22 per ounce. While U.S. gold futures plunged 0.2% at $1,915.90 per ounce. Reportedly, a weaker dollar and progress on fresh stimulus talks limited gold’s decline.
Asian stock market surged to a two-week high on Tuesday. Back at home, Sensex and Nifty have surged by nearly 1%.