One would expect that the festive season would make goldpricier, but the price of gold seems to be trapped in a wide range, and in thathas decided to go downhill.
Today, the stock market is in a free fall. Normally, onewould 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 followeach 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 withvolatility in dollar index. The volatility in dollar index may be overspeculations over US stimulus and US elections.
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In India, on Multi-Commodity Exchange (MCX), futurescontracts of December expiry were trading lower by 0.29% at Rs 50,690.
Overall, investors should not expect any directional bias untilclarity on US stimulus is seen. Still, the general bias is positive because ofUS dollar.