Gold Price On April 8: Gold futures surged nearly 5 per cent on Wednesday as the country entered the fifteenth day of a nationwide lockdown to curb the spread of the coronavirus pandemic. MCX gold futures declined as much as 0.88 per cent – or Rs 395 per 10 grams – to hit Rs 44,686 per 10 grams on the downside during the session, compared to their previous close of Rs 45,081 per 10 grams. At 12:08 pm, the gold futures contract (delivery on June 5) traded at Rs 44,780.00 per 10 grams, down Rs 301 per 10 grams (0.67 per cent) compared to the previous close.
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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 held steady on Wednesday as a stronger dollar countered risk-off sentiment stemming from fading optimism over signs of a slowing spread of the new coronavirus amid rising deaths.
Spot gold was last seen trading at $1,648.84 per ounce, having risen to its highest since March 10 on Tuesday at $1,671.40.
Domestic swung between gains and losses amid volatile trade following the best day for benchmark indices since 2009. The S&P BSE Sensex and the NSE Nifty climbed as much as 3.86 per cent each before giving up most of those gains in early afternoon deals.
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 upside can be expected in gold prices as the lockdown increases the yellow metal’s appeal as a safe haven.
“COMEX gold trades moderately weaker near $1680/oz after a 0.6% decline yesterday. Gold came under pressure after testing the highest level since 2012 yesterday. Choppiness in commodities and some recovery in US dollar has pressurized gold price. However, supporting price is US plans of more stimulus and continuing ETF inflows,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
“ETF holdings are near 2013 highs. Still the $1700 mark is proving to be a major hurdle as supply is seen at that level,” he added.