Gold prices fall in the domestic markets on June 15 even as global rates jumped on safe-haven demand. In the futures market, on the MCX, gold for August delivery declined 0.34% or Rs. 163 to Rs. 47171 per 10 gm. In May, gold prices had hit their highest price of Rs. 48,000 per 10 gm.
Economic fall out due to coronavirus led lockdown, high prices on stronger dollar will keep a tab on any unwarranted rise in gold prices while on the lower end the prices shall remain supported by its safe haven appeal which increases during economic and geopolitical risk.
"Weighing on gold price are concerns about consumer demand amid bleak economic outlook. Gold may continue to benefit from safe haven buying as risk sentiment has been dampened by growth and virus concerns," Kotak Securities said in a recent note.
"Gains in US dollar and resistance near $1750/ounce may keep a check on upside. Hence one needs to wait for corrective dip to create fresh long positions," the brokerage added.
Global Gold Rates
On indication of a second wave of coronavirus infection, the precious yellow metal gains on safe haven buying and on Monday rose 0.2% to $1732.2 per ounce.
Gold ETFs Rake In Rs. 815 Crore Net Inflow Amid Falling Rates And Volatile Equity
In the face of volatile equity and interest rate trending downward, investors investment interest have shifted towards gold and related investments such as Gold ETFs. This investment option has offered a return of 40-60%. In May alone the asset class has raked in Rs. 815 crore net inflow in contrast to Rs. 731 crore in April.
Back home, 24K and 22K gold is priced at Rs. 46020 and Rs. 47020 per 10 gm.