Gold prices rose on Wednesday tracking international rates as India entered the eighth day of a 21-day lockdown to fight the spread of the coronavirus pandemic. MCX gold futures rose as much as 0.68 per cent - or Rs 295 per 10 grams - to touch Rs 43,550 per 10 grams on the upside during the session, compared to their previous close of Rs 43,255 per 10 grams. At 4:36 pm, the gold futures contract (delivery on April 3) was up 0.57 per cent (Rs 245 per 10 grams) at Rs 43,500 per 10 grams.
According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the opening rate of gold jewellery stood at Rs 43,123 per 10 grams and silver at Rs 39,200 per kilogram - both excluding Goods and Services Tax (GST).
Gold jewellery prices vary in different parts of India - the second largest consumer of the precious metal - due to factors such as excise duty, state taxes and making charges.
In the international market, gold rose more than 1 per cent on Wednesday as fears over a worsening coronavirus pandemic triggered a flight to safety, with expectations of further monetary easing by central banks adding support.
Spot gold was last seen trading up 1.4 per cent at $1,592.83 per ounce, having slumped 3.1 per cent in the previous session on a strong dollar.
Domestic stock markets fell about 4 per cent in the first trading session of financial year 2020-21. The S&P BSE Sensex index ended 1,203.18 points lower at 28,265.31 and the broader NSE Nifty settled at 8,253.80, down 343.95 points from the previous close, as IT and financial stocks led a selloff across sectors.
Commodity exchanges last week cut down trading hours, in a shift from the practice of allowing trading till midnight, in the wake of coronavirus pandemic. The trading now begins at 9 am and ends at 5 pm, instead of 11:50 pm earlier.
What Analysts Say On Current Gold Rate
Analysts said some upside can be expected in gold prices as the lockdown increases the yellow metal's appeal as a safe haven.
“COMEX gold trades mixed near $1600/oz after a 2.8% slump yesterday. Gold plunged amid position squaring ahead of quarter end and better than expected US and Chinese economic data. However, supporting price is ETF inflow, increasing cases of virus worldwide and Fed's willingness to take measures to support the economy,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
"Gold has retreated after failing to sustain above $1700/oz level however we do not expect a sustained decline as stimulus measures may continue to support,” he added.