Gold Prices Ease As Global Stock Markets Surge, US Stocks At Record High

On Tuesday, gold prices in India eased on global cues. Gold futures on MCX were trading almost flat, up only by 0.37 percent at Rs 51,459 per 10 grams and in the international market, spot gold was down 0.2 percent to $1,929.25 per ounce.

Asian stock market, including indices of the stock exchanges in India, opened higher after Standard and Poor's 500 and the Nasdaq Composite, both notched up to new all-time highs on the back of US regulatory approval for a blood plasma treatment for COVID-19.

At the close of trading on Monday, the Dow Jones Industrial Average was up 378.13 points, or 1.35 percent, at 28,308.46, S&P 500 rose 34.12 points, or 1 percent, to 3,431.28 and Nasdaq Composite advanced 67.92 points, or 0.6 percent, to 11,379.72.

On Tuesday, in India, S&P BSE Sensex opened 0.4 percent higher at 38,948 while the NSE Nifty 50 index opened above the mark of 11,500, gaining 0.4 percent to 11,513. Both the indices of Indian equity markets ended at the highest level since February on Monday.

Investors now await US Federal Reserve Chairman Jerome Powell's speech on Thursday for clarity on the direction of American monetary policy.

Meanwhile, news on US-China trade negotiations, a major factor for movement in gold prices in the last two years, also weighed on the precious metal. Governments of the two nations said that trade negotiators on both the sides held a phone call Tuesday morning Beijing time about implementing the phase one agreement between them. The call came after a planned six-month review of the deal set for 15 August was delayed to an unspecified date.