Gold prices in India on the MCX edged lower on Wednesday (June 17, 2020) by as much as 0.47% or Ra. 223 to Rs. 47344 per 10 gm. Yesterday, in line with spike in gold rates internationally, domestic gold rate climbed higher to Rs. 48,414 in the national capital on further weakness in rupee to below 76 mark.
Also, another crucial trigger for any price movement in gold shall be India-China border tensions.
Gold prices in the international market
On Wednesday, global gold rates largely remained steady on mixed cues of grim economic outlook as well as strength in the dollar after record US sales for May month. Spot gold was flat at $1,727.22 per ounce.
Also on Tuesday, Jerome Powell, Fed Chair painted a bleak picture of the economy.
Bank of Japan also maintained its monetary stance on Tuesday steady pointing that the economy would recover from the Covid 19 fall out.
In the previous session, after an initial decline gold continued to climb on resurgence of Covid 19 infection in China, offsetting optimism over a Covid 19 drug dexamethasone as well as record gains in US retail sales which in May jumped 17.7%.
Nonetheless, dollar on rise in US retail sales stands strong at 97.003 against a basket of its rival currencies.