Gold Price Today: Domestic Gold Futures Edge Lower To Rs 50,881 As Equities Fall
Gold Price Today: Domestic gold prices edged higher on Friday as global equities fell following a slump in US markets amid amid fading hopes of a fast recovery from the coronavirus pandemic. Multi Commodity Exchange (MCX) gold futures - due for settlement on October 5 - climbed to as high as Rs 50,997, up Rs 255 - or 0.50 per cent - from their previous close, only briefly turning negative during the session. The MCX gold futures contract settled at Rs 50,881, up 0.27 per cent - or Rs 139 - for the day. (Track Gold Price Here)
In the international market, spot gold was last seen trading 0.34 per cent higher at $1,944.30 per ounce, having risen to as high as $1,949.30 per ounce earlier on Friday.
A selloff in global equities bolstered the appeal of gold as a safe-haven option of US jobs data, but a strong dollar put bullion on track for a weekly decline.
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets.
Domestic spot price settled at Rs 51,106 per 10 grams for the day, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Domestic share markets closed sharply lower, tracking broader equities that fell after an overnight selloff in technology stocks on Wall Street, with financial stocks also weighing on the main indexes. The S&P BSE Sensex ended 1.63 per cent lower at 38,357.18, and the broader NSE Nifty 50 benchmark settled at 11,333.85, down 1.68 per cent from its previous close.
Analysts say US non-farm payrolls data will be monitored closely for cues.
"Gold has fallen for last two sessions after failing to sustain above the $2,000/oz level. Gold's correction has been led by recovery in the US dollar, weaker ETF (exchange traded fund) activity and weaker consumer demand. Gold may remain choppy as US equity markets are showing some vulnerability to correction while the dollar index is attempting some pullback," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"We, however, expect buying interest to emerge at lower level as Fed's dovish stance and mixed US economic data may limit upside in US dollar," he added.
