For Quick Alerts
For Daily Alerts

Gold Prices Open Unchanged For Second Day; Prices May Fall


On June 4, gold in the futures market opened unchanged for the second day in a row at Rs. 46099 per 10 gm. This is partly on strong equities but the losses remain curbed due to tensions in the global market.

Gold prices in India are on the falling trend now primarily due to profit booking in the asset class. In the futures market on June 3, the metal on the MCX dived to a low of Rs. 45900 per 10 gm.


There has been improvement in risk appetite as equities stand firm and economies have been opening up after the coronavirus led lockdown.

Gold Prices Open Unchanged For Second Day; Prices May Fall

Factors to determine gold price over a period of time

Over a period of time, gold will gain traction based on stimulus measures being taken by global central banks to an extent and how the economies recover from the coronavirus led economic slowdown.

But by and large over the longer turn, given the volatility in equities, yellow precious metal gold will qualify as a return enhancing asset and would also help mitigate risk at the same time. And at current prices of below Rs. 46000 per 10 gm, investors could see it as a good entry point and book positions in the metal for a long term.

On June 3, 2020, 24 k gold was priced at Rs. 46845 per 10 gm plus GST of 3%.

Gold prices slipped by Rs 230 at Rs 46,845 per 10 gram in the Mumbai bullion market tracking weak global cues and rally in the equity market.

Current correction in gold price to be seen as a entry point in gold

" Navneet Damani, Vice President, Motilal Oswal, said traders hope that the ECB will deliver additional stimulus, by around 500 billion euros, when it meets tomorrow. Market participants will keep an eye on Service PMI number expected from major economies and private payroll number expected from the US SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings, rose 0.1 percent to 1,129.28 tonnes on Tuesday.

Outlook for gold


So, given the current global landscape with slight impact on the risk on sentiment despite US-China tension due to Hong Kong law, stimulus measures will at one hand support gold prices on the higher side while on the lower side US dollar index weakness and ETF inflows will maintain the momentum.

Read more about: gold gold prices
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X