Gold was trading lower on November 4  tracking a muted trend in the international spot prices as the dollar strengthened after early results showed a close contest between President Donald Trump and Democratic challenger Joe Biden in the US presidential election.Gold was trading lower on November 4  tracking a muted trend in the international spot prices as the dollar strengthened after early results showed a close contest between President Donald Trump and Democratic challenger Joe Biden in the US presidential election.


                               


On the Multi-Commodity Exchange (MCX), December gold contracts were trading lower by 0.38 percent at Rs 51,402 per 10 gram at 0920 hours. December silver futures were trading 1.2 percent lower at Rs 61,920 per kg.

Spot gold was trading lower at $1,901.72 per ounce, having fallen 1 percent earlier in the session, said a Reuters report. The dollar was up against a basket of major currencies, recovering from a one-week low earlier in the session.

Experts say that precious metals are likely to remain volatile as the market reacts to the US election but stimulus hopes will support prices.

Gold crossed $1,900 per troy ounce on November 3 in the International markets and gained for the third day in a row. Both the precious metals settled on a positive note ahead of US presidential election results.

December gold futures contract settled at $1,910.40 per troy ounce with a gain of 0.95 percent and the December silver contract settled at $24.33 per troy ounce with a gain of 1.25 percent.

Domestic markets also ended on a positive note. December gold futures settled above Rs 51,000 per 10 gram while silver ended at Rs 62,685 per kilogram, gaining more than 1 percent.

Rising coronavirus cases in the United States and Europe also supported safe-haven buying in precious metals. Terrorist attack in the Austrian capital Vienna was also a reason for gains in the precious metal prices, experts say.

“Ahead of the US presidential elections outcome and US Federal Reserve policy meet on Thursday, we expect both the precious metals to remain highly volatile in today's session,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“Gold has support at $1,900-1,888 per troy ounce and resistance is seen at $1,922-1,933 per troy ounce. Silver has support at $24-23.7 and resistance at $24.70-25,” he said.

Jain added that both side moves were expected in the precious metals and suggested trading with less quantity and with a strict stop loss.