After three consecutive days of gains, gold prices in India inched lower tracking fall in global rates. On the MCX gold futures for June delivery opened at Rs. 44777 and at 9:13 am traded with losses of 0.65% or Rs. 291 at 44790.00 per 10 gm. Silver too retreated in price by as much as 1.77% or Rs. 769 to Rs. 42725 per kg. On April 7, 2020, gold on the MCX hit a record high of Rs. 45,724 per 10 gm.
In the international markets, gold prices today inched lower, after hitting a near one-month high in the previous session, on strengthening in the US dollar as well as signs of slowing fatality rate in major hotspots due to coronavirus infection, thus rendering the precious yellow-metal less appealing as a 'safe-haven'.
The dollar gained as much as 0.26% against rival currencies, which makes gold expensive for buyers in other currencies.
Spot gold fell 0.2% to $1,644.99 per ounce by 0049 GMT. In Tuesday's session gold touched its highest price since March 10. US gold futures declined 0.7% to $1,671.30.
Silver too slipped 0.9% to $14.86.
The coronavirus pandemic has taken global economy by storm and as per the latest data from Johns Hopkins University over 1.4 million people have been infected with the virus and death toll has risen to more than 82000. China's Wuhan (the epicenter of coronavirus pandemic) today lifted the lockdown that spanned 76 days.
Outlook on Gold
Commodity experts maintain bullish outlook on Gold. Here's rationale behind the likely surge in gold prices in days to come:
1. To strengthen world economy reeling under economic crisis assumed to be worse than global financial crisis of 2008, central banks across the globe are resorting to massive quantitative easing measures, which will likely push gold prices.
2. Uncertainty around conronavirus as to the extent of damage it will result in and the period until when it last, has favoured gold as an asset class due to its ' safe haven' appeal.
3. Nonetheless, sharp gains in gold price are ruled out at the moment due to gains in the dollar as well as less of physical buying due to global lockdowns to curb coronavirus.
Notably, spot gold market in India is shut due to 21-days nationwide lockdown to arrest Covid 19 spread.