Gold Price Today: Domestic Gold Futures Slide Below Rs 51,300 Mark Tracking Global Rates

Gold Price Today: Domestic gold prices fell around 1 per cent on Thursday tracking global rates, as equities took a breather and investors awaited a key speech by the US central bank's chairman later in the day. Multi Commodity Exchange (MCX) gold futures, due for an October 5 delivery, slid as much as 1.20 per cent - or Rs 619 - to Rs 51,160 during the session, before trimming some of those losses. The MCX gold futures contract settled at Rs 51,271 for the day, down Rs 508 - or 0.98 per cent - compared to its previous close. 

Gold Price Today: Domestic gold prices fell around 1 per cent on Thursday tracking global rates, as equities took a breather and investors awaited a key speech by the US central bank's chairman later in the day. Multi Commodity Exchange (MCX) gold futures, due for an October 5 delivery, slid as much as 1.20 per cent - or Rs 619 - to Rs 51,160 during the session, before trimming some of those losses. The MCX gold futures contract settled at Rs 51,271 for the day, down Rs 508 - or 0.98 per cent - compared to its previous close. 

In the international market, spot gold fell on Thursday, following a sharp rise in the previous session, as investors squared positions to focus on whether Federal Reserve Chairman Jerome Powell signals a change in monetary strategy.

It was last seen trading 0.52 per cent lower at $1,942.30 per ounce, having risen more than 1 per cent the previous day.

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 stock markets continued to rise for the fifth day in a row, with the S&P BSE Sensex index closing up 0.10 per cent at 39,113.47 and the broader NSE Nifty 50 benchmark rising 0.08 per cent to 11,559.25 as monthly derivatives contracts expired.

The domestic spot rate for gold jewellery settled at Rs 51,222 per 10 grams, excluding Goods and Services Tax, for the day, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

What Analysts Say

"Gold edged up after its price managed to hold above the key $1,900/oz level despite recent correction. Weakness in the US dollar, ETF (exchange traded fund) inflows, US-China tensions, hopes of additional stimulus and positioning ahead of the Fed Chairman's comments at the Jackson Hole Symposium pushed the gold price higher," said Ravindra Rao, VP-head commodity research, Kotak Securities.

"Gold may remain choppy ahead of Fed Chairman's comments," he said.