Gold Rates Drop Nearly 3% Retreating From Record Highs

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Gold Rate India: At 1:03 pm, gold futures traded 2.27% lower at Rs 42,591.00 per 10 grams on the MCX

Gold Price Today: Gold prices fell on Tuesday receding from record highs touched in the previous session. MCX Gold futures declined as much as 2.77 per cent to hit Rs 42,371 per 10 grams during Tuesday’s session, a day after uncertainty about the threat of coronavirus outbreak on world economy increased gold’s appeal as a safe haven. At 1:03 pm, the gold futures contract (delivery on April 3) traded lower by Rs 989.00 – or 2.27 per cent – at Rs 42,591.00 per 10 grams, compared with its previous close of Rs 43,580 per 10 grams.

According to Mumbai-based industry body IBJA or India Bullion and Jewellers Association, the indicative selling price of gold stood at Rs 42,580 per 10 grams in the morning session.

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.

Analysts say the return of stability in the equity markets affected gold prices on Tuesday.

“COMEX gold has slipped over 1 per cent to trade near $1655/oz Tuesday after testing a seven-year high yesterday,” said Ravindra Rao, VP-head commodity research at Kotak Securities. “Gold weakened amid some stability in equity markets on hopes of a treatment for the coronavirus as well as on expectations that central banks and governments may take measures to support their economies.”

“We may see choppy trade continuing in gold as market players react to virus-related developments; however, buying interest may emerge at lower levels unless there are clear signs that the outbreak has been contained,” Mr Rao added.





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