Domestic Gold Futures Edge Lower, But Hold Rs 51,200 Mark As Global Rates Pause
Gold Price Today: Domestic gold prices gave up all of their early gains on Tuesday as global spot rates held steady near $1,927 per ounce mark. Multi Commodity Exchange (MCX) gold futures - due for an October 5 delivery - moved within a Rs 321 range, sliding to as low as Rs 51,212 from the day's strongest level of Rs 51,533. At 2:26 pm, the MCX gold futures quoted at Rs 51,227, down Rs 42 - or 0.08 per cent - from its previous close of Rs 51,269.
In the international market, spot gold held steady as a softer dollar offset pressure from an equity rally while investors stayed away from taking big positions ahead of Federal Reserve Chair Jerome Powell's speech later this week.
Spot gold was last seen trading down 0.09 per cent at $1,927 per ounce, having traded between $1,924.82 per ounce and $1,937.56 compared to its previous close of $1,928.88.
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets, benefiting from a flood of capital into the world economy and investors seeking a relatively safe location to put their money in.
Domestic stock markets gave up most of early gains on Tuesday amid weakness in heavyweights such as Reliance Industries and HDFC Bank. Benchmark indices Sensex and Nifty traded barely up in afternoon deals, having risen half a per cent earlier during the session, as losses in consumer goods and metal shares countered gains in financial shares.
The opening price gold jewellery was at Rs 51,628 per 10 grams excluding Goods and Services Tax, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
What Analysts Say
"MCX gold price slumped 1.4 per cent yesterday amid a stronger rupee against the dollar and weaker physical market demand. In the international market, gold is consolidating above $1,900/oz level after sharp volatility in last few days," said Ravindra Rao, VP-head commodity research, Kotak Securities.:
"Gold may continue to witness a range trade as the US dollar struggles for direction however buying interest may emerge at lower levels amid continuing challenges in form of rising coronavirus cases and US-China tensions," he said.
