Gold Rate Today : MCX gold futures declined by Rs 1,026 per 10 grams – or 2.31 per cent – from their previous close to hit Rs 43,432 per 10 grams at the weakest level recorded during the session before recovering most of those losses.
However, gold prices recovered most of those losses in evening. At 11:55 pm, the gold futures contract (delivery on April 3) traded lower by 220.00 (0.49 per cent) at Rs 44,238.00 per 10 grams, compared with its previous close of Rs 44,458.00 per 10 grams.
Gold prices recovered most of intraday losses after plunging more than 2 per cent on Friday, amid weakness in global rates of the yellow metal and depreciation in the rupee against the US dollar.
According to Mumbai-based industry body IBJA or India Bullion and Jewellers Association, the indicative selling price of gold jewellery stood at Rs 43,160 per 10 grams (excluding GST) in the first half of the day.
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.
The slide in gold prices came despite weakness in domestic as well as global equity markets, amid continuing concerns about the spread of the coronavirus outbreak. Traditionally, gold shares an inverse relation to equity, as higher risk increases the yellow metal’s appeal as a safe haven.
International gold prices jumped 1.2 per cent to their highest since January 2013 at $1,689.65 on Friday, but then shed all those gains to drop as much as 1.4 per cent. US stocks tanked and the Dow Jones Industrials shed nearly 2 per cent, while government bonds rallied as traders worried about a prolonged economic slowdown.
Domestic equity markets took a major hit on Friday, with benchmark indices S&P BSE Sensex and NSE Nifty 2.32 per cent and 2.48 per cent to settle at 37,576.62 and 10,989.45 respectively. The rupee plunged by 54 paise to settle at 73.87 against the US dollar, its lowest level recorded in 16 months, making imports expensive for consumers in India.
