Gold Price Today: Domestic gold prices gave up early gains to close marginally lower on Tuesday, as equity markets continued their upmove after a day's halt. Multi Commodity Exchange (MCX) gold futures (due for an October 5 delivery) settled at Rs 51,530, down Rs 171 or 0.33 per cent from their previous close, having risen to as high as Rs 52,100 earlier during the session. In the international market, spot gold turned flat after touching the $2,000 per ounce mark on Tuesday, as weakness in the US dollar made the yellow metal cheaper for holders of other currencies. (Track Gold Price Here)
Spot gold was last seen trading down $0.40 at $1,978.20 per ounce, having earlier risen to as high as $2,001.20 per ounce.
At this level, it was less than 4.5 per cent away from an all-time high of $2,089.20 per ounce registered this month.
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 spot price settled at Rs 51,575 per 10 grams for the day, excluding GST, according to Mumbai-based India Bullion and Jewellers Association (IBJA), an industry body.
Domestic stock markets ended a volatile session higher. The S&P BSE Sensex rose 0.71 per cent to end at 38,900.80, and the broader NSE Nifty 50 benchmark settled at 11,470.25, up 0.73 per cent from its previous close, a day after both fell more than 2 per cent.
What Analysts Say
"Gold remains supported by persisting weakness in the US dollar. The dollar index trades near May 2018 lows weighed down by shift in Fed's inflation strategy which highlights that interest rate may remain low for a long time," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Gold may continue to trade with a positive bias as the bulls might target the psychological of $2,000/oz. However, the US dollar should be watched for as any recovery might put pressure on gold," he added.