Futures of gold rose on Thursday as vote counting in the US showed Joseph Biden is likely to be the next President if the country. Gold futures on the Multi Commodity Exchange (MCX) jumped above the level of Rs 51,000 per 10 gram tracking a positive trend in the international markets.
Gold prices rose on Thursday after falling for straight days. Currently, the December contract of Gold futures on the MCX is trading at Rs 51,281 per 10 gram higher by Rs 461 or 0.91 per cent from the previous close.
Silver futures also surged during the day. Currently, the December contract of silver on the MCX is trading at Rs 62,317 per kg, higher by Rs 928 or 1.51 per cent from its previous close.
“As the election process commenced, markets anticipate a slight edge towards Democrat Joe Biden winning the US presidency which might open gates for larger US stimulus,” Anuj Gupta, DVP, Commodities and Currencies Research at Angel Broking.
He further said that alarming increase in the coronavirus cases around the globe clouded the global economic outlook.
“Many nations reinforced fresh lockdown which dented markets risk appetite and further supported Gold prices. Markets will have a keen watch on the outcome of the Federal Open Market Committee (FOMC),” Gupta said.