Gold prices reversed early gains on Monday, tracking global rates. MCX gold futures moved in a range of Rs 43,212-43,580 per 10 grams with a downward bias in the first half of the session, compared to their previous close of Rs 43,571 per 10 grams. At 11:25 am, the gold futures contract (delivery on April 3) was down 0.67 per cent (Rs 291 per 10 grams) at Rs 43,280 per 10 grams. 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 edged lower as a flight to cash to cover losses in equities overshadowed measures by global central banks to contain the economic fallout from the coronavirus epidemic.
Spot gold was last seen trading 0.2 per cent lower at $1,614.46 per ounce, following a 0.7 per cent drop on Friday.
Domestic stock markets started the week on a lower note tracking a renewed selloff in global peers as the number of coronavirus cases increased the world over. The S&P BSE Sensex index dropped to as low as 28,708.83 - down 1,106.76 points from the previous close - in the first half of the day, and the broader NSE Nifty benchmark hit 8,333.60 on the downside before recovering some of those losses.
Commodity exchanges last week 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.
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 marginally lower near $1650/oz amid mixed factors. Supporting price is increasing virus spread, monetary easing measures by central banks and ETF inflows. However, weighing on price is some stability in US dollar index and concerns about physical demand due to virus related restrictions,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
"Gold's upward momentum came to a halt after failure to break past the $1700/oz level. We may see choppy trade amid lack of clear cues; however, general bias may be on the upside as virus spread may increase safe haven appeal,” he added.
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