Gold prices in India slip below Rs 46,000 per gram
Gold prices on Tuesday plunged Rs 338 to Rs 45,853 per 10 gram in futures trade as participants were engaged in profit-booking at prevailing levels in tandem with the yellow metal slipping overseas.Updated: Apr 28, 2020 17:27 IST
Gold and silver paused their rally on Tuesday as they tracked the trend in international spot prices after several countries said they will ease lockdowns to curb the coronavirus infections.
Gold prices on Tuesday plunged Rs 338 to Rs 45,853 per 10 gram in futures trade as participants were engaged in profit-booking at prevailing levels in tandem with the yellow metal slipping overseas.
On the Multi Commodity Exchange (MCX), June gold contracts traded lower by 0.76% at Rs 45,838 per 10 gram at 9:30am. Silver futures were trading nearly 1% lower at Rs 41,546 per kg.
According to experts, the yellow metal may remain under pressure amid stability in equity markets, and investors could look at selling it in the range of Rs 46,200-46,220 for a target of Rs 45,850 per 10 gm.
The yellow metal for August delivery also declined by Rs 353, or 0.76%, to Rs 46,000 per 10 gram in 4,366 lots.
Globally, gold fell nearly 1% on Tuesday as risk appetite was boosted by some countries easing coronavirus-induced restrictions, although recession fears and hopes for more stimulus kept the bullion near the $1,700 level.
Spot gold eased 0.7% to $1,702.00 per ounce by 0701 GMT, after falling as much as 1.4% during the session. US gold futures fell 0.4% to $1,716.20 per ounce.
Some countries, including Italy and New Zealand, announced an easing of lockdowns and more parts of the United States looked set to restart business.
Britain’s Prime Minister Boris Johnson, however, said it was too dangerous to relax a stringent lockdown for fear of a deadly second outbreak.
“The fact that we’re seeing these attempts from different countries to at least partially reopen is providing some downside to gold,” said Warren Patterson, an analyst at ING, said while speaking to Reuters.
“The impact from the shutdown is going to be felt for quite some time moving forward through macro data and that will continue to support gold,” said Patterson.
The US dollar edged up making gold costlier for investors using other currencies.
“The dollar index is putting pressure on the prices,” Jigar Trivedi, a commodities analyst at Anand Rathi Shares and Stock Brokers in Mumbai, told Reuters.
“The key triggers for gold this week would be European central bank and US Federal Reserve meeting outcomes,” Trivedi said.
(With agency inputs)