Gold Rate Today: Gold Futures Extend Decline To Trade Near Rs 42,500

Gold Price Today: Gold prices continued to decline for a second straight session on Wednesday, further receding from record highs touched this week. MCX Gold futures dropped by as much as Rs 308 per 10 grams - or 0.72 per cent - to Rs 42,480 per 10 grams in morning deals. On Monday, the prospect of the coronavirus outbreak impacting world economy pushed gold prices to record highs, increasing the yellow metal's appeal as a safe haven. At 10:32 am, the gold futures contract (delivery on April 3) traded lower by Rs 220.00 - or 0.51 per cent - at Rs 42,568.00 per 10 grams, compared with its previous close of Rs 43,580 per 10 grams.

According to Mumbai-based industry body IBJA or India Bullion and Jewellers Association, the indicative selling price of gold jewellery stood at Rs 42,590 per 10 grams in the morning session.

Gold 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.

What Analysts Say On Current Gold Rate

Analysts say gold prices may witness some volatility in the near term as investors assess the impact of the coronavirus pandemic on consumer demand.

"COMEX gold trades traded weaker near $1640/oz today amid concerns about consumer demand in China and India as well as uncertainty about how quickly central banks may act...amid increasing spread of the coronavirus outbreak beyond China," said Ravindra Rao, VP-head commodity research at Kotak Securities.

However, safe-haven buying provided some support to the gold price, he said.

"General bias may be on the upside unless the coronavirus outbreak is controlled or a treatment is discovered," added Mr Rao of Kotak Securities.