Gold Price Today: Domestic Gold Futures Drop Nearly 1% As Global Rates Ease
Gold Price Today: Domestic gold prices dropped nearly 1 per cent on Wednesday but managed to defend the Rs 51,050 mark, as stock markets rose following strong US manufacturing data which raised hopes of a swifter global economic recovery. Multi Commodity Exchange (MCX) gold futures (due for an October 5 delivery) fell as much as 0.87 per cent - or Rs 448 - to hit Rs 51,054 during the session. The MCX gold futures contract settled at Rs 51,067, down 0.84 per cent - or Rs 435 - for the day. (Track Gold Price Here)
In the international market, spot gold was last seen trading 1.49 per cent lower at $1,949.50 per ounce, having declined to as low as $1,946.70 per ounce earlier on Wednesday.
A rise in global equities after data revealed better-than-expected manufacturing activity in the US last month along with weakness in the dollar pulled the gold price lower, say analysts.
At the current level, spot gold is less than 7 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 share markets ended a volatile session mildly higher, extending gains to a second straight day, tracking a broader rally in equities. The S&P BSE Sensex index ended 0.48 per cent higher at 39,086.03, and the broader NSE Nifty 50 benchmark closed up 0.56 per cent at 11,535.
What Analysts Say
"Gold rose as high as $2001.2/oz in intraday trade yesterday but recovered to end little changed. Gold rallied sharply after taking support near $1900/oz level however price is struggling to break past the next key level of $2000/oz," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Gold may witness choppy trade as US dollar counters signs of recovery against Fed's dovish stance however we expect to see buying interest in gold at lower levels amid persisting risks to global economy and hopes of continuing stimulus measures," he added.
