- MCX gold futures hit all-time high of Rs 52,750
- Domestic gold rates have broken a series of records recently
- Uncertainty in capital markets boosts gold's safe-haven appeal
Gold Rate In India: Domestic gold futures turned flat after briefly trading at a new record high on Wednesday, tracking easing rates of the yellow metal in the international market ahead of the Federal Reserve's monetary policy decision. Multi Commodity Exchange (MCX) gold futures - due for an August 5 delivery - climbed up to an all-time high of Rs 52,750, edging past an existing record level of Rs 52,700 registered on Tuesday, before giving up intraday gains. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)
At 11:24 am, the MCX gold futures traded down 0.07 per cent at Rs 52,555. (Track Gold Rate Here)
(Gold futures took out an existing record high of Rs 52,410 on Monday)
Precious metal prices have broken a series of records over the past few weeks amid rising COVID-19 cases around the globe and worsening ties between the world's two largest economies. 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.
In the international market, spot gold retreated on Wednesday as the dollar briefly halted its slide and investors booked profits after prices hit a record high in the last session.
Spot gold was last seen trading down 0.40 per cent at $1,950.64 per ounce, a day after hitting an all-time high of $1,980.57 per ounce.
Gold jewellery prices vary in different parts of the country due to factors such as state taxes and making charges.
Meanwhile, domestic stock markets were stuck in a narrow range on Wednesday, fluctuating between gains and losses, as gains in banking and metal shares were countered by losses in IT and energy stocks.
Since March, domestic commodity exchanges have trimmed trading hours on account of pandemic-related restrictions.
What Analysts Say On Gold Rates
"Gold hit a record high level of $1,974.7/oz in intraday trade and corrected till $1900.2/oz before ending moderately higher at $1,944.6. Gold continues to hold above $1,900/oz level which shows that the momentum is still positive. However, it now needs a fresh trigger to extend the gains beyond the highs tested yesterday," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Federal Reserve's dovish stance has been factored in. So, unless there is some surprise, gold could see some correction,” Mr Rao added.