Gold price today | Yellow metal closes at record high of Rs 44,890/10 gm, crosses Rs 45K intra-day

Gold prices rose for the fourth consecutive day to hit a fresh record high of Rs 44,890 per 10 gram in the Mumbai bullion market on the back of a weaker dollar-rupee. The precious metal is likely to take further cues from minutes of the US Federal Reserve to be released later in the day.

The major gold trading centres in the country have been shut due to a 21-day lockdown announced by state governments to prevent spread of novel coronavirus, or COVID-19, pandemic.

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The rate of a 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 33,668, Rs 41,119 and Rs 44,890 plus 3 percent GST, respectively.

Commenting on the day's trade, Navneet Damani, Vice President, Motilal Oswal, said gold prices eased on April 7 after an aggressive rally seen earlier. "A firm dollar and signs of a slowdown in new coronavirus cases in major hot spots hurt the metal's safe-haven appeal and pushed it further away from a near one-month high hit in the previous session." Damani expects domestic prices to hover in the Rs 44,400-45,400 range.

The Chinese city of Wuhan began allowing people to leave for the first time since it was locked down began 76 days ago, despite fears of a second wave of infection if such restrictions are eased too soon.

Religare Broking said gold futures on the NYMEX broke the $1,700 ceiling, touching an over eight-year high. "Gold prices on MCX passed the Rs 45,000 mark, surging to all-time high this week, amid global anxiety over the COVID-19 pandemic, prospect of a sharp recession, an extended period of low interest rates and big increases in government borrowing."

After disappointing jobs number from US, market participants will be keeping an eye on the FOMC minutes expected later on April 8.

Along with gold, silver prices too gained in opening trade as easing panic sentiment in financial markets helped boost prices, but ended lower. Silver prices slipped Rs 190 to Rs 42,110 per kg from its closing on April 7.

The spot gold/silver ratio currently stands at 106.60 to 1, which means the amount of silver required to buy one ounce of gold.

In the futures market, gold touched an intraday high of Rs 45,036 and an intraday low of Rs 44,840 on the MCX. For the June series, the yellow metal touched a low of Rs 36,572 and a high of Rs 45,724.

Gold futures for delivery in June slipped Rs 241, or 0.53 percent on the MCX trading at Rs 44,840 per 10 gm, with a business turnover of 17,011 lots. The same for August delivery eased Rs 164, or 0.36 percent, at Rs 45,066 per 10 gm, with a business turnover of 1,860 lots.

The value of the June and August contracts traded so far is Rs 1,416.29 crore and Rs 67.55 crore, respectively.

Similarly, Gold Mini contract for May was ended down Rs 126, or 0.28 percent at Rs 44,917.