Gold prices on Thursday (July 2, 2020) declined in line with international rates. In the futures market, August gold contract on the MCX slipped by 0.19% or Rs. 91 to Rs. 48176 per 10 gm at 9:19 am.
In Wednesday's session, retail price of gold in Mumbai went past psychologically important price level of Rs. 50,000 per 10gm levels for the first time. The levels remain supported due to depreciating rupee as well as robust demand for the yellow precious metal on a global level.
International Gold Rates On July 2, 2020
In the international market, gold rates fell today after hitting near eight-year year in the earlier session on optimism around potential Covid 19 vaccine and strong US data. Spot gold slipped 0.2% to to $1,767.11 per ounce by 0034 GMT, after hitting $1,788.96 on July 1, its highest since October 2012. U.S. gold futures also shed 0.2% to $1,777.30.
Encouraging US manufacturing and payroll data
In the US manufacturing activity showed recovery in June as the economy reopened, touching its highest level in over a year. Similar recovery in factory activity has been reported in countries including France, Germany and China.
Also, at the same time, US private payrolls for June month as per the ADP National Employment report added 2.36 million jobs.
Better than expected economic data and optimism around Covid 19 vaccine boosted risk-on sentiment, denting the yellow metal's safe haven appeal.