Gold Rate On March 31: Gold prices moved in a tight range with negative bias on Tuesday amid weakness in global rates. MCX gold futures touched Rs 43,835 and Rs 43,656 per 10 grams at the strongest and weakest levels recorded in the first half of the day, compared to their previous close of Rs 43,842 per 10 grams. At 12:08 pm, the gold futures contract (delivery on April 3) was down 0.42 per cent (Rs 186 per 10 grams) at Rs 43,656 per 10 grams.
Mumbai-based industry body India Bullion and Jewellers Association (IBJA) sought government intervention to help the bullion and jewellery sector combat the impact of the coronavirus outbreak on export trade. The trade body suggested measures such as relaxation in interest and incidental charges on export credit for a period of 180 days commencing from January 1 to June 30.
IBJA (@IBJA1919) March 31, 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 eased as the US dollar held firm, while fears of further economic fallout from the coronavirus pandemic provided some supported to bullion, which is on track to post its sixth straight quarterly gain.
Spot gold was last seen trading 0.3 per cent lower at $1,616.34 an ounce.
Domestic stock markets rose amid gains in Asian peers as the country entered a seventh day of a 21-day nationwide lockout to fight the spread of the pandemic. The S&P BSE Sensex index rose as much as 876.48 points to touch 29,316.80 and the broader NSE Nifty benchmark climbed to as high as 8,529.60, up 248.5 points from the previous close, backed by gains across sectors.
At 12:14 pm, the Sensex traded 892.11 points – or 3.14 per cent – higher at 29,332.43 while the Nifty was up 276.70 points – or 3.34 per cent – at 8,557.80.
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 moderately lower near $1635/oz weighed down by gains in US dollar index, upbeat Chinese economic data and marginal ETF outflows. however, supporting price is increasing risks from the virus spread and expectations of more monetary and fiscal stimulus measures,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
“Gold has corrected after failing to sustain above $1700/oz level and while choppy trade is likely the general bias may be on the upside as growth concerns and stimulus measures may continue to support,” he added.