Gold Price In India: Domestic gold and silver futures fluctuated between gains and losses in a wide range on Wednesday, as data showing the UK’s economy shrank by a record 20.4 per cent in the April-June period fuelled the coronavirus pandemic-led slowdown fears. Multi Commodity Exchange (MCX) gold futures – due for an October 5 delivery – registered wild swings in a more than Rs 2,500 range during the session, between Rs 49,955 and Rs 52,460, as against their previous close of Rs 51,929. MCX silver futures – due for a September 4 delivery – followed suit in a Rs 7,570 range, quoting at Rs 60,910 and Rs 68,480 at the day’s weakest and strongest levels, as against their previous close of Rs 66,934, having also hitthe first lower circuit at 6 per cent (Rs 62,918) during the session.
Here are 10 things to know about gold and silver prices today:
The October 5 gold futures contract on MCX settled with a gain of 0.56 per cent – or Rs 291 – at Rs 52,220, and the September 4 silver contract closed at Rs 66,772, down 0.24 per cent (Rs 162) from its previous close. (Track Gold, Silver Prices)
In the international market, gold broke above the $1900 per ounce mark, rising about 1 per cent to $1,929.63 per ounce a day after its steepest fall in more than seven years, and earlier in the Asian session.silver gained 0.9 per cent to $25.02 per ounce.
Analysts say a resurgent dollar prompted investors to reassess their positions in the precious metals after a record-breaking price rally.
“After days of upmove, gold has finally shown some correction and a drop below $2000/oz has led to extended losses… With the selloff, the momentum has weakened and we may see some extended losses,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
The dollar index – which gauges the greenback against six currencies – also fluctuated, and was last seen trading 0.24 per cent lower, having risen as much as 0.30 per cent earlier on Wednesday. Strength in the US dollar makes gold more expensive for those trading in other currencies, amid a mixed trend in Asian markets.
Back home, the closing rate of gold jewellery stood at Rs 52,626 per 10 grams and silver at Rs 65,749 per kilogram excluding GST, according to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body. Gold jewellery prices vary in different parts of the country, due to factors such as taxes and making charges.
Meanwhile, domestic equity markets closed lower, with the Nifty 50 snapping a six-day winning streak, dragged by pharmaceutical and energy stocks, although a stronger finish by public sector banks helped limit losses. The S&P BSE Sensex index fell 0.10 per cent to 38,369.63, and the broader NSE Nifty 50 benchmark ended down 0.12 per cent at 11,308.40.
Some say precious metals are geared up for further gains amid rising COVID-19 cases across the world.
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)
— IBJA (@IBJA1919) August 12, 2020