Gold Futures Fall 1%, But Remain Above Rs 47,000 Per 10 Grams Mark

Current Gold Price In India: MCX gold futures fell to as low as Rs 47,071/10 grams during the session

Gold Price In India: Domestic gold futures eased more than 1 per cent on Wednesday but held firm the Rs 47,000 per 10 grams mark. MCX gold futures eased by Rs 496 per 10 grams – or 1.04 per cent – to Rs 47,071 per 10 grams mark at the weakest level recorded during the session, compared to their previous close of Rs 47,567 per 10 grams. At 3:01 pm, the gold futures contract (delivery on August 5) traded down 0.98 per cent – or Rs 465 per 10 grams – at Rs 47,102 per 10 grams. (Track Gold Rate In India Here)

According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the opening rate of gold jewellery stood at Rs 47,596 per 10 grams, and silver at Rs 48,146 per kilogram – both excluding Goods and Services Tax (GST).

Gold jewellery prices vary in different parts of India – the second largest consumer of the precious metal – due to factors such as excise duty, state taxes and making charges. 

In the international market, gold prices held steady, supported by concerns stemming from a surge in coronavirus infections in Beijing but with hopes for a potential COVID-19 drug and a stronger US dollar limiting their advance.

Spot gold was last seen trading flat at $1,727.26 per ounce, holding a narrow $6 range. 

Domestic stock markets pushed higher in afternoon deals on Wednesday backed by buying interest in banking and automobile shares.

The S&P BSE Sensex index bounced back 600.7 points from an intraday low of 33,332.96 registered in morning to touch 33,933.66 on the upside in afternoon deals. The broader NSE Nifty 50 benchmark moved to as high as 10,003.60, having slid to has low as 9,833.80 earlier.

In March, commodity exchanges cut down trading hours, in a shift from the practice of allowing trading till midnight, in the wake of coronavirus pandemic. The trading now begins at 9 am and ends at 5 pm, instead of 11:50 pm earlier.

Gold Price: What Analysts Say On Current Gold Rate

“After a 0.5 per cent gain yesterday, COMEX gold traded marginally lower near $1735/oz in early deals today. Amid the mixed cues from increasing virus cases in US and China, and hopes of additional stimulus measures countered by gains in equity markets, gold remains rangebound,” said Ravindra Rao, VP-head commodity research at Kotak Securities.

“ETF (exchange traded fund) investors are on a wait-and-watch mode. Although the general bias may be on the upside in the near term, gold may trade choppy as market players assess the coronavirus situation and whether it results in fresh restrictions or not,” he added.

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