Gold Price Today: Domestic Gold Futures Move In Rs 350 Range As Global Rates Inch Higher
Gold Price Today: Domestic gold prices were stuck in a narrow range on Friday, tracking global rates which inched higher amid concerns about rising COVID-19 cases around the world.Multi Commodity Exchange (MCX) gold futures (due for an October 5 delivery) were rangebound within Rs 50,890-51,244, as against their previous close of Rs 50,902. At 11:22 am, the MCX gold futures contract quoted at Rs 50,972, up Rs 70 - or 0.14 per cent - compared to its previous close. (Track Gold Price Here)
In the international market, spot gold rose on Friday, having declined over 1 per cent in the previous session, as concerns over the coronavirus pandemic-led economic slump boosted the yellow metal's appeal. However, gains were restricted by a jump in US Treasury yields.
Spot gold was up 0.84 per cent at $1,948.90 per ounce at the time, having risen to as high as $1,952 per ounce earlier on Friday.
The US central bank's aggressive new strategy to lift employment and increased tolerance for higher inflation pushed American bond yields higher, limiting gold's advance.
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 relatively safer options to direct their funds.
Domestic stock markets continued to rise for the sixth session in a row. The S&P BSE Sensex index climbed up as much as 0.68 per cent to 39,378.32 during the session, whereas the broader NSE Nifty 50 benchmark rose to as high as 11,634.55, up 0.65 per cent from its previous close.
What Analysts Say
"Gold rose to as high as $1,987/oz in intraday trade yesterday but shed all the gains and ended lower. Gold rallied immediately in reaction to Fed's alteration to its inflation strategy however the rally did not sustain as the move was well anticipated and as the US dollar recovered," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"The mixed trade in gold in last few sessions indicates lack of conviction about future trend and this is likely to keep prices choppy in the near term unless fresh factors emerge. However general bias may be on the upside owing to Fed's dovish stance and increasing challenges to global economy," he said.
