Gold Price Today: Domestic gold prices slide below the Rs 51,050 mark on Wednesday, as a rise in US dollar made the yellow metal dearer for those dealing in other currencies. Multi Commodity Exchange (MCX) gold futures - due for settlement on October 5 - declined by as much as Rs 314, or 0.61 per cent, to Rs 51,039 during the session. At 1:10 pm, the MCX gold futures contract quoted at Rs 51,134, down Rs 219 - or 0.43 per cent - from its previous close of Rs 51,353. (Track Gold Price Here)
In the international market, spot gold was last seen trading 0.13 per cent lower at $1,940.70 per ounce, having declined to as low as $1,929.20 per ounce earlier on Wednesday.
Weighing on gold's appeal, the dollar index - which gauges the greenback against six other currencies - rose to a near one-month high against its rivals, rising for a second straight day. However, precious metals found some support due to a selloff across Asian shares, tracking a technology stocks-led selloff on Wall Street overnight.
Gold is often used as a hedge against inflation and currency debasement.
Investors now await the outcome of the European Central Bank's policy meeting, due on Thursday. While no major policy moves are expected since it has acted aggressively to shore up the virus-hit economy, investors will watch out for its inflation forecasts.
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets. Central banks around the world, including the US central bank, have rolled out massive stimulus measures and slashed interest rates near zero to mitigate the impact of COVID-19 on global economy.
#Gold and #Silver Opening #Rates for 09/09/2020#IBJA pic.twitter.com/FSmXpRRQUd
Back home, the spot rate of gold stood at Rs 51,343 per 10 grams, excluding GST, according to Mumbai-based India Bullion and Jewellers Association (IBJA), an industry body. Gold jewellery rates vary in different parts of the country due to factors such as local charges and local making charges.
What Analysts Say On Gold
"Gold fell to as low as $1,911.7/oz in intraday trade yesterday but bounced back to end higher. Mixed factors have led to directionless trade in the yellow metal, and this may continue in the near term," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Gold may remain choppy but buying might re-emerge at lower levels amid increasing global uncertainty and also as the US central bank's dovish stance may limit upside in the dollar," he added.
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