Gold Price On April 17: Gold futures plunged over 3 per cent on Friday tracking global prices amid strength in domestic equity markets. MCX gold futures fell as much as 3.48 per cent – or Rs 1,644 per 10 grams – to hit Rs 45,614 per 10 grams during the session, compared to their previous close of Rs 47,258 per 10 grams. At 4:36 pm, the gold futures contract (delivery on June 5) was down 3.09 per cent – or Rs 1,458 per 10 grams – at Rs 45,800 per 10 grams. (Track Gold Prices In India Here)
According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the closing rate of gold jewellery stood at Rs 45,964 per 10 grams and silver at Rs 42,460 per kilogram – both excluding Goods and Services Tax (GST).
IBJA #StayHomeStaySafe (@IBJA1919) April 17, 2020
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 fell more than 1.5 per cent as investors opted for riskier assets after news of US President Donald Trump’s plans to restart the US economy and promising early data related to a potential COVID-19 treatment.
Spot gold was last seen trading 1.4 per cent lower at $1,693.20 an ounce, having this week scaled a seven-year peak on heightened worries over the worst recession in decades.
Domestic share markets rose more than 3 per cent on Friday as bank stocks rallied after the Reserve Bank of India cut a key interest rate to ease financial stress stemming from the world’s biggest nationwide lockdown. The Nifty closed 3.05 per cent higher at 9,266.75, while the Sensex rose 3.22 per cent to 31,588.60. Both the indices finished the holiday-shortened week more than 1 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 more upside can be expected in gold prices as the lockdown increases the yellow metal’s appeal as a safe haven.
“COMEX gold trades lower by 0.5 per cent near $1724/oz but is off intraday low of $1716.4/oz. Gold ha weakened by gains in US equity futures amid US President Trump’s guidelines to reopen economy in coming days,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
“However, supporting the price is a modest decline in US dollar index and robust ETF inflows,” he added.