Gold futures surged nearly 5 per cent on Tuesday as the country entered the fourteenth day of a nationwide lockdown to curb the spread of the coronavirus pandemic. MCX gold futures rose as much as 4.58 per cent - or Rs 2,002 per 10 grams - to touch Rs 45,724 per 10 grams on the upside during the session, compared to their previous close of Rs 43,722 per 10 grams. At 2:46 pm, the gold futures contract (delivery on June 5) traded at Rs 45,016 per 10 grams, up Rs 1,294 per 10 grams (2.96 per cent) compared to the 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 45,121 per 10 grams and silver at Rs 42,200 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 fell 1 per cent on Tuesday, retreating from a one-month high hit earlier in the session as risk sentiment improved on wider market optimism that the coronavirus pandemic may be easing.
Spot gold was last seen trading down 0.3 per cent at $1,657.50 per ounce, after rising to a one-month high of $1,671.40. The metal had risen as much as 2.8 per cent on Monday.
Domestic stock markets soared more than 8 per cent amid buying across sectors, tracking gains in global peers, and were set to close higher after two sessions of losses. The S&P BSE Sensex index surged as much as 2,417.02 points to touch 30,007.97 in late afternoon deals, and the broader NSE Nifty benchmark climbed to as high as 8,780.00, up 696.2 points from the previous close.
Commodity exchanges have 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.
What Analysts Say On Current Gold Rate
Analysts said some upside can be expected in gold prices as the lockdown increases the yellow metal's appeal as a safe haven.
“COMEX gold surged over 2.5% and hit a session high of $1742.6/oz today, the highest level since Nov.2012. Gold rallied amid choppy US dollar index, sharp ETF inflows and expectations of more stimulus measures. Gold continues to remain supported by expectations that central banks and governments may continue to take measures to support their economies from the negative impact of the virus outbreak,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
"Gold was struggling to break past the $1700/oz level and now with the breakout we could see extended gains,” he added.