As risk sentiment improves due to gains in Asian equities and rally in oil, gold prices in the futures market declined by 0.72% or Rs. 332 to trade at Rs. 45475 per 10 gm. In trade today gold prices hit a low of Rs. 45400 per 10gm,while made an early high of Rs. 45527.
The prices have been rallying for 2-consecutive days as participants betted on fresh position in the yellow metal that pushed its prices higher. In trade on May 1 and May 4 , gold surged in price by close to Rs. 1000 per 10 gm and last closed at Rs. 45807 on the MCX.
International Gold Prices
International gold prices on Monday (May 4, 2020) climbed at similar scale of 0.76%. Spot gold was trading 0.3 percent up 0.3 at $1,704.38 per ounce, while US gold futures rose 0.8 percent to $1,715.
Notably as per a Reuters report, world's leading gold refining firms namely Valcambi and Argor-Heraeus are on course to resume full operations as the Swiss regulators have eased coronavirus led lockdowns. These entities together process 1500 tonnes which accounts for nearly 33% of the global supply.
The disruption in gold supply was another trigger fuelling gold prices to levels not seen in decades.
Now as the supply will return to at previous levels we may expect gold to trade range-bound.
Import Demand In India Plummets To 3-Decade Low Level
As per government sources, India which is the second biggest consumer of gold has seen gold imports plunge in April by a record 99.9% year on year basis to three decade low.