Gold Price Today: Yellow Metal Trades Below Rs 44,650 Mark, Silver Slumps
Gold Price in India: Domestic gold futures registered a volatile session on Friday, March 5. Spot gold prices dropped by Rs 522 to Rs 43,887 per 10 grams in the national capital, tracking a weaker trend in the international markets, according to HDFC Securities. Silver rates also plunged by Rs 1,822 to Rs 64,805 per kg, compared with the previous close of Rs 66,627per kg. Multi Commodity Exchange (MCX) gold futures, due for an April 5 delivery, was last seen trading 0.15 per cent higher at Rs 44,607, having swung between Rs 44,2017 and Rs 44,649 during the session compared to their previous close of Rs 44,541. Silver futures were trading lower by 1.44 per cent at Rs 64,530. (Also Read: Sovereign Gold Bonds Subscription For 12th Trance Ends Today: All You Need To Know )
Domestic spot gold closed at Rs 44,516 per 10 grams on Friday, and silver at Rs 65,128 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
In the international market, gold was trading lower at $1,696 per ounce and silver was down at $ 25.20 an ounce. Meanwhile, the rupee declined by 19 paise to close at 73.02 against the dollar due to stronger American currency and risk aversion in global markets. Brent crude futures, the global oil benchmark, gained 2.59 per cent to $ 68.47 per barrel.
What Analysts Say
"Spot prices for 24 karat gold at Delhi fell by Rs 522 in COMEX (New York-based commodities exchange) gold prices,'' said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
''Gold prices have been falling since the news of an effective vaccine was reported, as it has ignited hope that the rising number of cases will be arrested and the pandemic will end soon. Gold prices have fallen to hit an 8-month low on rising US Treasury yield, appreciating dollar, and global economic recovery. Moving forward, treasury yield, dollar movement, and the pace of economic recovery worldwide will guide gold prices.” Nish Bhatt, Founder, and CEO, Millwood Kane International.
''Gold remains pressurized by firmness in the US dollar on the back of higher bond yields, optimism about the US economy and safe haven buying. Also weighing on gold price is continuing ETF outflows. However, supporting price is progress on US stimulus and loose monetary policy stance of major central banks. Gold may remain under pressure unless US bond yields correct or we see concrete measures on US stimulus,'' said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.