Gold Price Today: Domestic Gold Futures Decline Nearly 1% To Rs 53,125 As Global Rates Ease

Gold Price In India: Domestic gold futures fell on Wednesday as the global spot rate slid below the $2,000 per ounce mark a day after registering sharp gains. Multi Commodity Exchange (MCX) gold futures - due for a delivery on October 5 - declined by as much as Rs 446 - or 0.83 per cent - to Rs 53,125 in morning deals, compared to their previous close of Rs 53,571. At 10:03 am, the MCX gold futures contract quoted at Rs 53,150, down Rs 421 - or 0.79 per cent - from its previous close.(Track Gold Price Here | Silver Is Outperforming Gold, Is It The New Gold?)

In the international market, the spot gold was last seen trading 0.4 per cent lower at $1,993.68 per ounce, having hit  a one-week high of $2,014.97 in the previous session.

Analysts awaited minutes from the US central bank's last policy meeting.

(Also Read: Gold's "Dream Run" May Continue, Say Analysts)

The dollar index steadied after hitting a more than two-year low in the last session. The dollar index - which gauges the greenback against six currencies - rose as much as 0.09 per cent on Wednesday. A stronger dollar makes gold expensive for holders of other currencies. 

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.

The dollar, also considered a safe-haven, has lost its appeal recently after the Federal Reserve rolled out a wave of fiscal measures and cut interest rates to near zero to mitigate economic damage caused by the coronavirus outbreak.

(Gold futures had risen to an all-time high of Rs 56,191 on August 7)

What Analysts Say

"Gold fell as low as $1985.2/oz in intraday trade yesterday in reaction to upbeat US housing data and some US equity indices hitting record high level but recovered soon to end above the pivotal $2000/oz mark," said Ravindra Rao, VP-head commodity research, Kotak Securities.

"Gold has rebounded sharply from recent lows and is holding near the key $2000/oz level which shows possibility of extended gains.”