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.
#Gold and #Silver Closing #Rates for 27/08/2020#IBJA pic.twitter.com/IIdUQnKYov
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.
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