Gold Price In India: Domestic gold futures fell more than 2 per cent on Tuesday tracking global rates, which retreated from record levels. Multi Commodity Exchange (MCX) gold futures - due for an October 5 delivery - dropped by as much as Rs 1,126 - or 2.05 per cent - to Rs 53,820 during the session. At 1:04 pm, the MCX gold futures contract quoted at Rs 53,960, up Rs 986 - or 1.79 per cent - from its previous close. (Track Gold Price Here)
(Gold futures had risen to an all-time high of Rs 56,191 last week)
In the international market, the gold price fell as the dollar's relative value against other currencies recovered, spurring some investors to lock in gains in bullion, which has soared to record levels of $2,000 per ounce. Spot gold was last seen trading 0.50 per cent lower at $2,017.53 per ounce, retreating from a record high of $2,072.50 hit last week.
Gold has been one of the most consistent gainers through the six months of coronavirus-led turmoil in financial markets, benefiting from a flood of capital into the world economy and investors seeking a relatively safe location to park money with interest rates at or near zero.
Typically, any sign of uncertainty in the financial markets boosts the appeal of gold as a safe-haven bet, as investors rush away from riskier asset classes. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)
The opening rate of gold jewellery stood at Rs 54,528 per 10 grams on Tuesday, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA). Gold jewellery prices vary in different parts of the country, due to factors such as taxes and making charges.
Domestic stock markets registered sharp gains amid buying across financial, consumer goods and metal stocks, with benchmark indices Sensex and Nifty touching their highest levels in five months.
Analysts say gold's overall appeal was intact, with prices up more than 33 per cent so far this year.
"Gold surged to a record high level last week but is consolidating amid lack of fresh cues as is evident from mixed trade. Weighing on gold price is the US dollar's attempt to recovery after slumping to two-year lows last week," said Ravindra Rao, VP-head commodity research, Kotak Securities.
The dollar index - which measures the greenback against six currencies - was last seen trading flat on Tuesday.
"The US dollar index rose for a second day yesterday as US-China tensions increased its safe-haven appeal. With the US dollar index attempting some recovery, we may see some correction in gold, however, it is likely to hold the $2000/oz level amid global concerns.”