Gold futures edged higher on Thursday as the country entered the sixteenth day of a nationwide lockdown to curb the spread of the coronavirus pandemic. MCX gold futures rose as much as 0.86 per cent - or Rs 386 per 10 grams - to touch Rs 45,327 per 10 grams during the session, compared to their previous close of Rs 44,941 per 10 grams. The gold futures contract (delivery on June 5) settled at Rs 45,302.00 per 10 grams for the day, up 0.80 per cent - or Rs 361 per 10 grams - compared to the previous close.
According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the closing rate of gold jewellery stood at Rs 43,936 per 10 grams and silver at Rs 40,310 per kilogram - both excluding Goods and Services Tax (GST).
#Gold and #Silver Closing #Rates for 09/04/2020#IBJA pic.twitter.com/D6SHj6TVZY
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.
In the international market, gold prices climbed up nearly 1 per cent on safe-haven buying ahead of a long weekend and a crucial meeting of top oil producers amid generally more positive markets driven by hopes the coronavirus pandemic is close to peaking.
Spot gold was last seen trading up 0.9 per cent at $1,660.38 per ounce, having hit a four-week high of $1,671.40 on Tuesday. It has risen more than 2.6 per cent this week. Most markets will be closed for Good Friday on April 10.
Domestic stock markets closed over 4 per cent higher on Thursday tracking gains in Asian peers. The S&P BSE Sensex index ended up 4.23 per cent at 31,159.27, and the broader NSE Nifty 50 benchmark closed 4.15 per cent higher at 9,111.90. Both the indices snapped seven consecutive weekly losses and finished the holiday-shortened week nearly 13 per cent higher.
Last month, 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.
Gold Price: What Analysts Say On Current Gold Rate
Analysts said some upside can be expected in gold prices as the lockdown increases the yellow metal's appeal as a safe haven.
“COMEX gold trades mixed near $1680/oz after a near flat close yesterday. Supporting gold price is increasing virus spread and hopes of additional stimulus measures by Fed and US government. However, weighing on price is firmer US dollar. Weaker consumer demand is also capping the upside. But investment demand is on the rise with SPDR Gold ETF holdings near 2013 highs,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
"The general bias for gold prices remains on the upside however strong bullishness will be seen only on sustenance above $1700/Oz,” he added.
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