The Democratic-led US House of Representatives voted in favour of President Donald Trump’s demand for $ 2,000 Covid-19 relief checks on Monday, sending the measure on to an uncertain future in the Republican-controlled Senate.
Precious metals are used as a hedge against inflation, which tends to kick in when money is pumped into the system.
Gold futures on MCX were up 0.11 per cent or Rs 54 at Rs 50,067 per 10 grams. Silver futures dipped 0.26 per cent or Rs 181 to Rs 68,636 per kg.
In the spot market, Gold prices gained Rs 185 to Rs 49,757 per 10 gram in the national capital on Monday, in line with the rally in price of the precious metal globally, according to HDFC Securities. Silver prices also jumped Rs 1,322 to Rs 68,156 per kilogram.
Globally, Gold prices rose on Tuesday as the dollar eased, while investors kept a close watch on a US Senate vote on increased pandemic aid checks to individuals.
Spot gold rose 0.5 per cent to $ 1,880.06 per ounce by 0108 GMT, after closing slightly lower in the last session. On Monday, the metal had climbed as much 1.3 per cent after the passage of a near $ 900 billion US stimulus package. US gold futures were up 0.1 per cent to $ 1,882.20.
Hedge funds and money managers raised bullish positions in COMEX gold and silver contracts in the week to Dec. 21, the US Commodity Futures Trading Commission (CFTC) said on Monday.
Holdings in SPDR’s Gold Trust , the world’s largest gold-backed exchange-traded fund, rose 0.2 per cent to 1,169.86 tonnes on Monday from 1,167.53 tonnes on Thursday.
China’s net gold imports via Hong Kong rebounded about 82 per cent in November after a plunge in October, Hong Kong Census and Statistics Department data showed on Monday.
Silver rose 1.3 per cent to $ 26.50 an ounce. Platinum climbed 0.7 per cent to $ 1,038.46 and palladium gained 0.8 per cent to $ 2,342.79.