One would expect that the festive season would make gold pricier, but the price of gold seems to be trapped in a wide range, and in that has decided to go downhill.
Today, the stock market is in a free fall. Normally, one would expect that falling stock markets mean rising precious metals including gold. However, today has been a strange day.
Both the stock markets and the gold have decided to follow each other south.
Analysts have placed support at Rs 50,500-50,300.
Gold prices over the world share a relation with US Dollar. Analysts do not see gold gaining strength this week, possibly linked with volatility in dollar index. The volatility in dollar index may be over speculations over US stimulus and US elections.
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In India, on Multi-Commodity Exchange (MCX), futures contracts of December expiry were trading lower by 0.29% at Rs 50,690.
Overall, investors should not expect any directional bias until clarity on US stimulus is seen. Still, the general bias is positive because of US dollar.