In the futures market, gold prices gained by as much as 1.3% or Rs. 510 on weak equities to Rs. 45835 per 10 gm.
Gold prices on the MCX after rising in the morning trade on Tuesday (April 21, 2020) lost 0.85% or 389.00 to Rs. 45325.00 per 10 gm. The losses came despite investors being worried about rising coronavirus cases and losses in equity. Notably, oil price decline to near zero levels failed to lift safe haven appeal of the metal.
In the global markets, gold prices remained steady as weak equities due to falling oil prices were offset by gains in the dollar.Spot gold was steady at $1,685.46/ ounce by 0041 GMT. U.S. gold futures were up 0.9% at $1,703.60.
In the previous session, investors rushed in for cash to cover losses in other asset classes due to record weakness in oil markets.
Spot markets in India continue to be closed due to nationwide lockdown which has been extended till May 3.
Meanwhile, Bank of America Corp. has raised gold price 18 month target price to $3000 per ounce in its report "The Fed can't print gold."
Also, given the lockdown and hammering of the demand, traders have raised their price forecast for palladium.
There has been announced that from April 23, non-agri commodity market will resume to trade for their regular trading hours.