Current Gold Price In India: MCX gold futures came close to a record Rs 50,936 clocked on Thursday
Gold Rate In India: Domestic gold futures hovered near their all-time highs on Friday, as international prices were headed for their biggest weekly gain in over three months. Multi Commodity Exchange (MCX) gold futures, due for an August 5 delivery, rose by Rs 225 or 0.44 per cent to Rs 50,925 at the strongest level during the session, inches from a record Rs 50,936 registered on Thursday. Silver futures (September 4 delivery) climbed to as high as Rs 61,364, still nearly 2 per cent away from their record high. Sky-high prices have already dampened retail demand for gold in India, the world's second largest consumer of the precious metal. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)
At 1:16 pm, the MCX gold futures traded 0.35 per cent higher at Rs 50,875, while the silver contract quoted flat at Rs 61,186. (Track Gold Rate Here)
In the international market, gold was headed on Friday for its biggest weekly gain in more than three months as it steadied near a nine-year high, benefiting from a weak dollar and inflation expectations due to stimulus for virus-battered economies. Spot gold was little changed at $1,885.32 per ounce, having hit its highest since September 2011 at $1,897.16 on Thursday. Silver eyed its best week since 1987, with additional impetus coming from bets for a revival in industrial activity.
Precious metal prices have broken a series of records over the past few weeks amid rising COVID-19 cases in the country and the world. Typically, any sign of uncertainty in the capital markets boosts the appeal of gold as a safe-haven bet, as investors rush away from riskier asset classes.
According to the India Bullion and Jewellers Association (IBJA), a Mumbai-based industry body, the opening rate of gold jewellery stood at Rs 50,552 per 10 grams and silver at Rs 60,586 per kilogram on Thursday - both excluding Goods and Services Tax.
#Gold and #Silver Opening #Rates for 23/07/2020#IBJApic.twitter.com/Ki6gq8qg8k
— IBJA (@IBJA1919) July 23, 2020
Gold jewellery prices vary in different parts of the country due to factors such as state taxes and making charges. India's gold imports dropped 96 per cent 13 tonnes in the June quarter after shipments virtually ground to a halt in April and May.
Meanwhile, domestic stock markets slid on Friday as investors took profit on some of this week's big gainers following a record jump in daily domestic cases of COVID-19, with a muted start in broader Asian markets also denting sentiment. The S&P BSE Sensex index fell as much as 1.03 per cent to 37,748.41 during the session, and the broader NSE Nifty 50 benchmark dropped 1.12 per cent to 11,090.30.
The benchmark indices have gained more than 33 per cent each since the country first went into a lockdown in late-March, while COVID-19 cases that numbered in hundreds at that time, have touched 1.29 million by Friday morning, according to government data.
In March, commodity exchanges cut down trading hours, in a shift from the practice of allowing trading till midnight, in the wake of coronavirus pandemic. The trading now begins at 9 am and ends at 5 pm, instead of 11:50 pm earlier.
What Analysts Say
"MCX gold price hit a new all-time high of Rs 50936/10 grams in intraday trade yesterday. Weakness in the US dollar has supported the rally in gold," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Gold has rallied sharply in last few sessions however the rally seems to be losing steam near $1900/oz.”
