Gold Price Today: Domestic Gold Futures Climb To Rs 50,850 As Shares Drop
Gold Price Today: Domestic gold prices registered mild gains on Monday, as global equities fell after weak US data raised concerns over a quick economic rebound from the coronavirus pandemic-led slump. Multi Commodity Exchange (MCX) gold futures - due for settlement on October 5 - climbed to as high as Rs 50,868, up Rs 190 - or 0.37 per cent - from their previous close. At 1:24 pm, the MCX gold futures contract quoted at Rs 50,835, up 0.31 per cent - or Rs 157 - from its previous close of Rs 50,678. (Track Gold Price Here)
In the international market, spot gold was last seen trading 0.19 per cent higher at $1,938 per ounce, having risen to as high as $1,947.50 per ounce earlier on Monday.
Federal Reserve Chairman Jerome Powell said the US jobs report for August was "a good one", but with gains likely to slow, the central bank is planning to keep its foot on the monetary policy gas pedal for years.
Central banks around the world, including the US central bank, have rolled out massive stimulus measures and slashed interest rates near zero to mitigate the impact of COVID-19 on global economy.
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 51,065 per 10 grams for the day, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Domestic share markets moved lower, as the country became the second-worst hit with coronavirus cases, and a continued selloff in Wall Street made investors jittery. The S&P BSE Sensex index tumbled as much as 393.84 points from 38,454.58 - the highest level recorded in early deals - to hit 38,060.74 on the downside, and the broader NSE Nifty 50 benchmark dropped to as low as 11,264.80, having strengthened to as high as 11,373.30 earlier compared to its previous close of 11,333.85.
Coronavirus infections surged past 4.2 million, making India overtake Brazil to be the country with the second-highest number of cases.
What Analysts Say On Gold
"Gold fell last week after failing to sustain above the $2,000/oz level, weighed down by some recovery in the US dollar index, slack ETF (exchange traded fund) buying and weaker consumer demand. Gold, however, bounced back today as weakness in equity markets increased its appeal as an alternative investment," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Gold may witness choppy trade as the US dollar and US equity market struggle for direction, however buying might emerge at lower levels amid persisting challenges to global economy," he added.
