Gold Price In India: Domestic gold futures recovered more than half of intraday losses after falling more than 1 per cent on Friday, as global prices of the yellow metal eased. Multi Commodity Exchange (MCX) gold futures – due for an October 5 delivery – declined by as much as Rs 770 – or 1.45 per cent – to hit Rs 52,160 during the session.The MCX gold futures contract shut shop at Rs 52,585 for the day, down Rs 345 – or 0.65 per cent – from its previous close. (Track Gold Price Here)
In the international market, the price of gold moved lower as a jump in US Treasury yields forced investors to reassess their positions again after a steep retreat from a record peak earlier this week.
Spot gold was seen trading 0.1 per cent lower at $1,950.94 per ounce.
Gold has been one of the most consistent gainers through the six months of coronavirus-led turmoil in financial markets, benefiting from a flood of capital into the world economy and investors seeking a relatively safe location to park money with interest rates at or near zero.
Typically, any sign of uncertainty in the financial markets boosts the appeal of gold as a safe-haven bet, as investors rush away from riskier asset classes. (Also Read: Gold’s “Dream Run” May Continue, Say Analysts)
(Gold futures had risen to an all-time high of Rs 56,191 last week)
The closing rate of gold jewellery stood at Rs 52,874 per 10 grams on Friday, excluding GST, according to Mumbai-based India Bullion and Jewellers Association (IBJA), an industry body.
— IBJA (@IBJA1919) August 14, 2020
What Analysts Say
“After a sharp fall from record high level of near $2089/oz to a three-week low of near $1874/oz, gold has bounced back to trade near $1950/oz,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
“Gold’s sharp rally in last few weeks made it vulnerable to profit-taking, however the sharp rebound shows that market players are still upbeat about its future outlook. Trend in US dollar continues to be the key price determining factor.”