Gold Futures Extend Gains To Second Straight Day as Equity Markets Brace For Coronavirus

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Gold Futures Extend Gains To Second Straight Day as Equity Markets Brace For Coronavirus

Gold Rate Today: Gold prices continued to rise for a second straight day on Friday as global equity markets reassessed the severity of the coronavirus outbreak and its impact on world economy. MCX Gold futures rose by as much as Rs 362 per 10 grams – or 0.85 per cent – from their previous close to touch Rs 42,747 per 10 grams in late morning deals. Analysts said the fear of the coronavirus outbreak spreading beyond China and hurting world economy increased the yellow metal’s appeal as a safe haven. At 11:52 am, the gold futures contract (delivery on April 3) traded 0.43 per cent (Rs 182.00 per 10 grams) higher at Rs 42,567.00 per 10 grams, compared with its previous close of Rs 42,385 per 10 grams.

Gold 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.

What Analysts Say On Current Gold Rate

Analysts say gold rates may witness some volatility in the near term as investors assess the impact of the coronavirus pandemic on consumer demand.

“COMEX gold traded mixed near $1645/oz as support from safe haven buying amid widening spread of coronavirus and weakness in US dollar index was countered by concerns about consumer demand in India and China, ETF outflows and uncertainty that central banks may act soon enough to support their economies,” said Ravindra Rao, VP-head commodity research at Kotak Securities.

“Mixed factors may keep price in a range however buying interest may emerge at lower levels until the virus outbreak is controlled,” Mr Rao added.



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