Gold Rate In India: Domestic gold futures jumped more than 1 per cent on Friday tracking global rates, as the country remained in the fourth phase of an extended lockdown to curb the spread of the coronavirus (COVID-19) pandemic. MCX gold futures rose by Rs 742 per 10 grams – or 1.60 per cent – to touch the Rs 47,130 per 10 grams mark at the strongest level during the session, compared to their previous close of Rs 46,388 per 10 grams. At 4:15 pm, the gold futures contract (delivery on June 5) traded at Rs 46,995 per 10 grams – down 1.31 per cent or Rs 607 per 10 grams compared to its previous close.
According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the opening rate of gold jewellery stood at Rs 46,996 per 10 grams, and silver at Rs 46,800 per kilogram – both excluding Goods and Services Tax (GST).
IBJA #StayHomeStaySafe (@IBJA1919) May 22, 2020
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. (Track Gold Rate In India Here)
In the international market, gold prices rebounded on Friday as escalating trade tensions between the United States and China lifted bullion’s safe-haven appeal, though a stronger dollar kept gains in check..
Spot gold was last seen trading up 0.5 per cent at $1,734.39 per ounce.
Domestic equity market benchmark indices S&P BSE Sensex and NSE Nifty 50 snapped a three-day winning run on Friday as banking stocks fell after the Reserve Bank of India (RBI) cut the repo rate by 40 basis points and extended a relief period for loan repayments in an effort to contain the economic fallout of the COVID-19 pandemic.
The Sensex ended 260.31 points – or 0.84 per cent – lower at 30,672.59 and the Nifty settled at 9,039.25, down 67.00 points (0.74 per cent) compared to its previous close.
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
“Gold’s rally seems to have exhausted and might be set for some corrective dip. Risk-on seems to be dominating the market as equity remains stable and ETF (exchange traded fund) buying is slowing,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
“However the supportive factors like escalating US-China tensions, monetary easing measures by central banks and weak economic outlook might trigger buying interest at lower levels,” he added.