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NEW DELHI: Gold and silver futures prices in the domestic market slipped on Wednesday due to profit booking following a sharp jump even as there was some progress in US stimulus talks.
The Trump administration on Tuesday proposed a package worth $916 billion including liability protections and state and local government aid, which leading Democrat and Republican lawmakers deemed as progress in the ongoing stimulus talks.
Gold tends to benefit from stimulus measures as it raises the prospect of inflation which bullion is used to hedge against.
Gold futures on MCX were down 0.69 per cent or Rs 346 at Rs 49,763 per 10 grams. Silver futures dipped 1.52 per cent or Rs 988 to Rs 64,204 per kg.
In the spot market, gold prices zoomed Rs 816 to Rs 49,430 per 10 gram in the national capital on Tuesday on a positive global trend, according to HDFC Securities. Silver also witnessed hectic demand, with prices jumping Rs 3,063 to Rs 64,361 per kilogram.
Globally, Gold prices eased on Wednesday as encouraging vaccine developments pushed investors towards riskier equities, although hopes for more U.S. stimulus kept bullion near the two-week highs hit in the previous session.
Spot gold fell 0.3 per cent to $1,865.46 per ounce by 0309 GMT, after hitting its highest since Nov. 23 at $1875.07 on Tuesday, while U.S. gold futures eased 0.3 per cent to $1,870.20.
Markets are hoping a stimulus will come through by next week and gold could move towards $1,900 by the end of the year.
Silver slipped 0.7 per cent to $24.38 an ounce, while platinum rose 0.6 per cent to $1,028.17 and palladium was up 0.1 per cent to $2,311.87.