Gold Price Falls Further, Global Prices At $2,727 Ahead Of US Elections

Domestic gold price stood at Rs 78,660 as of 9:30 a.m., according to the India Bullion Association. Following a rally lead by festive demand, price of the yellow metal has dipped. Ahead of the festive season, gold price had risen as much as Rs 81,500 on Oct. 23. It started declining from Oct. 31.

Gold prices have held over the Rs 78,000 mark post the slip. The commodity continues to be a safe-play for investors amid uncertain global cues. The futures prices for Dec. 5 stood at Rs 78,400, according to the Multi Commodity Exchange after a slight slip in these prices as well.

The commodity prices had seen a steady climb after the dip in July, triggered by the customs duty rate cut. The prices had slipped to Rs 67,800 but recovered till the Rs 70,000 mark by Aug. 1. The month of October saw a steady climb in prices and the numbers were comfortably above the Rs 75,000 mark all through the month.

The global prices stood at $2,727 ahead of one of the major global events according to Bloomberg. The US elections between Kamala Harris and Donald Trump may trigger some price movement of the commodity.

There is also expectation that the Federal Reserve will cut rates later in the week that is also driving the price of the commodity, Bloomberg reported.

The prices have held steady amid geo-political uncertainties and tension. The election results are an uncertainty as US goes in for polling on Tuesday. The results are bound to have an impact on the commodity prices as the investors brace for modification in policy and changes in trajectory.

Globally, the demand and the prices for the safe-haven investment holds steady ahead of the results.

Silver price stood at Rs 94,530 as of 9:30 a.m., according to the India Bullion Association. The futures prices of the commodity for Dec. 5 stood at Rs 94,226 according to the MCX.