Gold price fell today in Indian markets today, tracking a decline in global rates. On MCX, June gold futures fell 0.5% or ₹235 to ₹45,500, extending the previous session's ₹1,600 per 10 gram decline. After hitting a record high of ₹47,327 in derivatives markets, gold price in India have come off highs amid some profit-taking. Silver however edged higher on MCX with May futures edging 0.3% higher to ₹42,940 per kg.
In global markets, gold price dropped today to over one-week low amid a firm dollar. Investors also remained hopeful that economies will reopen from lockdowns. Spot gold price fell 0.5% to $1,675.92 per ounce, extending the previous session's 2% slump. Among other precious metals, platinum fell 0.9% to $768.12 while silver eased 0.3% to $15.08.
"A strong dollar and optimism that top economies will restart activities after the lockdown may hit the demand for the commodity. However, fears of a global recession and hopes of more quantitative easing programs from central banks continue to support the yellow metal’s short term positive outlook," said Hareesh V, Head Commodity Research at Geojit Financial Services.
As long as the prices (London spot) hold the support of $1,640 expect recovery upticks to continue through the day, he said. "However, it is required to sustain above $1718 to trigger major rallies. An unexpected drop below $1638 would take prices lower to $1600 or more."
The dollar strengthened 0.15% against key rivals to 99.98, making gold costlier for investors holding other currencies. Asian equity markets remained in consolidation mode after seeing a strong rally in the past few sessions.
Due to the lockdown in India, trading in spot gold markets remain suspended while physical gold demand in many other parts of the world remained weak due to coronavirus-led restrictions.Investors applying online and making payment through digital mode get a discount of ₹50 per gram. For such investors, the issue price of bond will be ₹4,589 per gram of gold.
The government will issue Sovereign Gold Bonds (SGBs) in six tranches beginning April 20 till September.
0 comments:
Post a Comment
I you have any doubt, Let me know!