Gold futures jumped before monthly derivative contracts expired before cooling in the midst of lackluster international trading as India entered the tenth day of a lockout 21 days to fight the spread of the coronavirus pandemic. MCX gold futures rose 5.68% – or 2,443 rupees for 10 grams – to hit 45,800 rupees for 10 grams up in a quick jump in the morning, compared to their previous close of 43,357 rupees for 10 grams. The gold futures contract (delivery on April 3) has cooled to settle with a gain of Rs 293 for 10 grams (0.68%) to Rs 43 650 for 10 grams.
According to the India Bullion and Jewelers Association (IBJA), an industry organization based in Mumbai, the closing rate for gold jewelry was 43,936 rupees for 10 grams and silver at 40,310 rupees per kilogram – both excluding goods and services tax (GST).
IBJA (@ IBJA1919) April 3, 2020
Prices for gold jewelry vary in different regions of India – the second largest consumer of precious metal – due to factors such as excise duties, state taxes and collection costs.
Gold prices moderated on the international market on Friday as the dollar strengthened, but were trapped in a narrow range ahead of US non-farm payroll data, which could further clarify the damage costs caused by coronavirus.
Spot gold lost 0.2% to $ 1,609.42 an ounce at 10:49 a.m. GMT (4:19 p.m. in India). The metal has dropped nearly 0.5% so far this week, following an 8% jump the previous week.
National stock markets fell more than 2% on Friday, after falling 4% in the previous session. The S&P BSE Sensex finished lower by 674.36 points – or 2.39% – to 27,590.95, and the broader NSE Nifty benchmark at 8,083.80, down from 170.00 points (2.06%) compared to the previous closing.
Last week, commodity exchanges cut trading hours from the practice of allowing trade until midnight following the coronavirus pandemic. Bargaining now begins at 9:00 a.m. and ends at 5:00 p.m. instead of 11:50 p.m. earlier.
What analysts say about the current gold rate
Analysts said gold prices could be expected to rise as the foreclosure increases the attractiveness of the yellow metal as a refuge.
“Gold is trading moderately lower, near $ 1,635 / oz, amid a stronger US dollar index and a correction in crude oil after yesterday’s hike. However, the support price disappointed the US economic data, the gloomy growth forecasts, the increase in ETF inflows and the robust sales of parts and bars in the United States, “said Ravindra Rao, vice president of commodity research at Kotak Securities.
“Gold may witness unstable trade, but general bias may be on the rise amid increasing risk of a virus epidemic,” he added.