Gold and silver prices in India remained under pressure today after a brief respite in the previous session. On MCX, October gold futures were down 0.27% at 49,771 per 10 gram in its fourth decline in five days. Silver futures on MCX were down 0.5% to 59329 per kg. In the previous session, gold prices rose 0.64% or 300 while silver added 1.8% or 1060 per kg. Gold and silver prices have sharply fallen this week in India. For this week, gold is down about 2,000 per 10 gram while silver has slumped 9,000 per kg.

In global markets gold remained under pressure weighed down by a stronger dollar but the losses were capped amid renewed hopes of more US stimulus measures. Spot gold fell 0.2% to $1,864.47 per ounce, extending losses to more than 4% this week. Amid other precious metals, silver fell 1.1% to $22.95 per ounce, platinum was down 0.3%, to $846.72 and palladium was flat at $2,226.44.

The dollar index is up 1.5% this week, its best since early-April. A firmer dollar makes bullion more expensive for holders of other currencies.

Gold has been under pressure this week as US dollar is being seen as the preferred safe haven asset amid renewed risk aversion in global financial markets, say analysts. Global risk sentiment has weakened as rising virus cases especially in Europe have rekindled worries about severe lockdowns. But countries so far have refrained from stringent measures.

Also weighing on market sentiment is delay in US stimulus package, political wrangling over appointment of Supreme Court Justice in US, mixed economic data from major economies, increased US-China tensions and Brexit uncertainty, Kotak Securities said.

Gold also weakened as ETF investors also chose to remain on the sidelines.

"Gold has broken below the key $1900/oz level and may remain under pressure unless we see a substantial correction in US dollar," Kotak Securities said.

Asian stock markets mostly edged up today following a higher finish on Walll Street as investors weighed the chances of a new American stimulus package

In the US, the Democrats are crafting a new $2.4 trillion stimulus bill to try and break the deadlock with Republicans. Central banks have rolled out massive stimulus and slashed interest rates to near zero to counter the economic damage from the pandemic, helping non-yielding gold jump over 20% this year.

As much as $380 billion from the U.S. Congress' last big coronavirus aid package is unused and could help households and businesses if lawmakers approve, Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin said on Thursday.