Domestic gold prices moved lower on Friday tracking weakness in global rates. Multi Commodity Exchange (MCX) gold futures – due for an October 5 delivery – settled with a loss of Rs 150 – or 0.29 per cent – for the day at Rs 52,001, having reversed direction to slide by as much as Rs 912 – or 1.75 per cent – to Rs 51,239 during the session. At the current level, the gold futures have receded 7.46 per cent from an all-time high of Rs 56,191 registered two weeks ago amid rising COVID-19 cases around the globe.
In the international market, spot gold settled down 0.35 per cent for the day at $1,940.47 per ounce, having dropped to as low as $1,911.61 earlier on Friday. Only this week, spot gold had risen past the $2,000 per ounce mark.
Domestic share markets rose as investors stayed hopeful of a pickup in business activity in a COVID-19-hit economy and took their cue from a tech-driven rally on Wall Street. The S&P BSE Sensex index ended 214.33 points – or 0.56 per cent – higher at 38,434.72, and the broader NSE Nifty 50 benchmark settled at 11,371.60, up 59.40 points – or 0.53 per cent – from its previous close.
#Gold and #Silver Closing #Rates for 21/08/2020#IBJApic.twitter.com/GIn9sIHoTo
— IBJA (@IBJA1919) August 21, 2020
Gold jewellery price stood at Rs 51,973 per 10 grams excluding Goods and Services Tax, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
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 a relatively safe location to put their money in.
What Analysts Say
“Gold hit a one-week low of $1,928.9/ounce in intraday trade yesterday but recovered to end at $1946.5/ounce and has extended the recovery further today. Mixed trade in US dollar has added to choppiness in gold price while ETF investors have moved to sidelines,” said Ravindra Rao, VP-head commodity research, Kotak Securities.:
“Gold may continue to witness choppy trade unless there are fresh triggers however we expect buying interest to emerge at lower levels as general outlook for US dollar still remains weak,” he said.
