Gold Rate In India: Domestic gold futures moved in a narrow Rs 300 range in early trade on Thursday, not far from a record high of Rs 53,399 registered this week. Multi Commodity Exchange (MCX) gold futures - due for an August 5 delivery - moved within Rs 53,122 and Rs 53,429, close to their previous close of Rs 53,187, as global rates eased after the US central bank signalled more support for the world's largest economy. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)
At 10:01 am, the MCX gold futures traded with a gain of Rs 20 - or 0.04 per cent - at Rs 53,207. (Track Gold Rate Here)
(Gold futures were close to a record high of Rs 53,399)
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 prices declined on Thursday after the Federal Reserve's vow to support the coronavirus-ravaged economy buoyed risk sentiment, with market expectations for prices to breach the $2,000 level facing resistance in the short term.
Spot gold was last seen trading 0.30 per cent lower at $1,964.70 per ounce.
The opening price of gold jewellery stood at Rs 53,354 per 10 grams on Thursday, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Meanwhile, domestic stock markets rose led by financial and IT shares, amid broader gains in Asian markets. The S&P BSE Sensex index rose as much as 0.77 per cent to 38,364.04 and the broader NSE Nifty 50 benchmark climbed to as high as 11,281.40, up 0.70 per cent from its previous close.
What Analysts Say On Gold Rates
"Gold hit a record high level of $1974.7/oz in intraday trade and corrected till $1900.2/oz before ending moderately higher at $1944.6. Gold continues to hold above $1900/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.
"Fed's dovish stance has been factored in, so unless there is some surprise, gold could see some correction.”