Gold Rate In India: Domestic gold futures weakened below the Rs 46,150 per 10 grams on Wednesday tracking global rates, as equities soared more than 3 per cent amid strong buying interest in banking stocks. MCX gold futures declined by Rs 547 per 10 grams - or 1.18 per cent - to Rs 45,775 per 10 grams mark at the weakest level during the session, compared to their previous close of Rs 46,322 per 10 grams. The gold futures contract (delivery on June 5) finished at Rs 46,120 per 10 grams - down 0.44 per cent or by Rs 202 per 10 grams - for the day.
According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the opening rate of gold jewellery stood at Rs 46,290 per 10 grams, and silver at Rs 47,000 per kilogram - both excluding Goods and Services Tax (GST).
#Gold and #Silver Closing #Rates for 27/05/2020#IBJA pic.twitter.com/EAPy1q2zVp
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. (Track Gold Rate In India Here)
In the international market, gold prices dropped to its lowest in two-weeks on Wednesday as hopes of quick economic recovery drove investors towards riskier assets, while US-China tensions over Hong Kong put a floor under bullion prices.
Spot gold was last seen trading down 0.3 per cent at $1,705.91 per ounce.
Domestic equity markets soared more than 3 per cent as value investors stepped in to buy beaten-down banking stocks. The S&P BSE Sensex index ended 995.92 points higher at 31,605.22 and the broader NSE Nifty 50 benchmark settled at 9,314.95, up 285.90 points from the previous close.
The Nifty Bank index - comprising stocks of 12 major lenders in the country - surged as much as 8.22 per cent during the session, and settled with a gain of 7.28 per cent.
In March, commodity exchanges 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.
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“Stable equity markets have been taking the investors away from the safe haven metal. Also weighing is the weaker consumer demand from India and China. However, intensifying US-China tensions, hopes additional stimulus measures and mixed economic data from major economies and weakness in US dollar may support the prices at lower levels,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
"Gold has corrected sharply from recent highs however we may see extended losses only if price breaks and sustains below $1700/oz level,” he added.
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