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Gold prices in India rise after falling for 2 days in a row
In the global market, gold slipped due to a stronger dollar, but losses were capped by falling equities after US crude futures plunged below zero for the first time ever in the previous session.
Gold prices in India bounced back on Tuesday, after falling for two days in a row, over positive momentum in international spot prices on strong dollar as the plunge in the US crude oil prices increased bullion’s safe-haven appeal.
On the Multi Commodity Exchange (MCX), June gold futures rose 0.31% to Rs 45,856 per 10 gram, tracking an overnight gain in the global markets.
MCX gold futures rose by as much as Rs 336 per 10 grams or 0.74% to touch Rs 46,050 per 10 grams in the first half of the session. At 11:10am, the gold futures contract with delivery on June 5 was up by Rs 283 per 10 grams or 0.62% at Rs 45,997 per 10 grams.
India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, said the opening rate of gold jewellery was at Rs 46,074 per 10 grams and silver at Rs 42,710 per kilogram. This was excluding Goods and Services Tax (GST).
Gold prices had hit a record high of Rs 47,327 per 10 gram in India the previous week, before seeing an about Rs 1,600 per 10-gram fall in previous two sessions.
Silver futures on MCX also edged 0.2% higher to Rs 42,823 per 10 gram on Tuesday.
In the global market, gold slipped due to a stronger dollar, but losses were capped by falling equities after US crude futures plunged below zero for the first time ever in the previous session.
Spot gold eased 0.2% to $1,689.17 per ounce by 0611 GMT, having jumped as much as 1% on Monday as the oil market crash increased safe-haven demand. US gold futures fell 0.3% to $1,706.70.
According to a Reuters poll, gold prices are expected to consolidate below recent highs during 2020 and 2021 as increased demand from investors for the safe-haven asset is offset by dollar strength and weak retail consumption.
On the technical front, spot gold may retest a support at $1,677 per ounce, with a good chance of breaking below this level and falling towards $1,634, Reuters analyst Wang Tao said.
The first tranche of sovereign gold bonds of fiscal 2020-21 opened for subscription on Monday and will close on April 23. The government of India will issue gold bonds once each month from April to September.
(With agency inputs)
