Gold Prices In India Slip Even As Globally Prices Rise On Dovish Policy Signals

In the Indian markets, gold inched lower on June 9, 2020 as equities are on a rise on a quicker recovery from the coronavirus pandemic. In the futures market, on the MCX gold at around 10 am, the prices were down by 0.13% or Rs. 58 to Rs. 46043 per 10 gm.

In the international markets, buoyed by a softer dollar and on caution over a likely dovish stance as the Fed's two-day policy is scheduled to start later today has caused the metal to rally. Higher stimulus measures and low interest rates tend to benefit gold. U.S. gold futures settled up 1.3% at $1,705.1 an ounce.

Nonetheless, even as the safe haven appeal of gold is fading on improvement in risk-on sentiment, softer dollar as well as the US-China spat will not cause any steep crash in its price.

But a record high on the Nasday which also confirmed the bulls are back on the streets limited the upside in the metal.

Also, the last week's May US data which showed addition of new jobs maintained an upbeat momentum and took a toll on gold prices.

Back home, even though the unlock 1.0 has resumed and gold outlets have opened up based on the criteria of a particular state, demand is expected to not return sooner than September.

In the spot market, gold of 24 K and 22 K on June 9, 2020 is priced at Rs. 45750 and Rs. 44750 per 10 gm.

GoodReturns.in