Gold Rate Today: Gold prices recovered most of intraday losses after plunging more than 2 per cent on Friday, amid weakness in global rates of the yellow metal and depreciation in the rupee against the US dollar. MCX gold futures declined by Rs 1,026 per 10 grams - or 2.31 per cent - from their previous close to hit Rs 43,432 per 10 grams at the weakest level recorded during the session before recovering most of those losses in evening. At 11:55 pm, the gold futures contract (delivery on April 3) traded lower by 220.00 (0.49 per cent) at Rs 44,238.00 per 10 grams, compared with its previous close of Rs 44,458.00 per 10 grams.
Analysts said gains in equity markets following sharp losses in past few sessions amid concerns about the coronavirus pandemic offset gold's appeal as a safe haven.
According to Mumbai-based industry body IBJA or India Bullion and Jewellers Association, the indicative selling price of gold jewellery stood at Rs 43,160 per 10 grams (excluding GST) in the first half of the day.
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.
#IBJA's indicative #Retail selling #Rates for #Gold #Jewellery
To get these rates on your phone give a missed call on - 8955664433 pic.twitter.com/R6E5bray3xThe slide in gold prices came despite weakness in domestic as well as global equity markets, amid continuing concerns about the spread of the coronavirus outbreak. Traditionally, gold shares an inverse relation to equity, as higher risk increases the yellow metal's appeal as a safe haven.
Domestic equity markets took a major hit on Friday, with benchmark indices S&P BSE Sensex and NSE Nifty 2.32 per cent and 2.48 per cent to settle at 37,576.62 and 10,989.45 respectively. The rupee plunged by 54 paise to settle at 73.87 against the US dollar, its lowest level recorded in 16 months, making imports expensive for consumers in India.
International gold prices jumped 1.2 per cent to their highest since January 2013 at $1,689.65 on Friday, but then shed all those gains to drop as much as 1.4 per cent. US stocks tanked and the Dow Jones Industrials shed nearly 2 per cent, while government bonds rallied as traders worried about a prolonged economic slowdown.
Despite the losses, safe-haven gold is still on course for its biggest weekly gain since February 2016. Nearly 60 new coronavirus cases were confirmed in the US on Thursday. Globally, virus cases surpassed 100,000 and over 3,300 deaths have been reported. The International Monetary Fund (IMF) said the previous day that the coronavirus outbreak would hold 2020 global output gains to the slowest pace since the 2008-2009 financial crisis.
The Federal Reserve made an emergency 50-basis-point interest rate cut this week, its first inter-meeting cut since 2008. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
What Analysts Say On Current Gold Rate
Analysts say gold rates may pick up in the near term due to fears the coronavirus outbreak may hamper world economy.
“COMEX gold trades mixed near $1670/oz after a sharp 1.5% gain yesterday. Gold and other safe haven assets rallied sharply as market players assess the monetary easing and fiscal measures against increasing health and economic risks from the virus spread which remains out of control," said Ravindra Rao, VP-head commodity research at Kotak Securities.
"Global economic concerns may continue to keep gold price higher however price now has to break recent high of near $1690/oz to see any major big move,” he added.
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