Gold on May 5, 2020 weakened in price in line with international rates by a marginal percentage of 0.06% or Rs. 27 to Rs. 45500 in the futures market for June contract in early trade. Nonetheless as the trading progressed it increased in price and touched an highof Rs. 45860 per 10 gm on risk-off sentiment as US-China tensions flared up and rupee weakened again to levels of 76 per US dollar.
In India, gold after four days of decline rallied as much as 1.38% or Rs. 621 tracking international cues and notched levels of Rs. 45,527 per 10 gm in the futures market on Friday.Notably, the MCX was open for the evening session on May 1, 2020. In line, silver also gained by 0.61% to Rs. 41,237 per kg.
In the month ended April, gold gained a hefty 6% as global banks propelled a stimulus bail-out and equities also rebounded from heavy sell off.
International gold prices are set for the weekly loss as economies are reopening up after a long Covid-19 led lockdown to restrict its spread. And in the short term, with not much cues, the precious yellow metal is expected to trade above $1700 per ounce.
The physical purchase in the commodity has been sluggish despite the current turmoil supporting it as higher price as well as coronavirus led restrictions weigh.
Also, as for India's demand for the commodity in the first quarter, WGC iterated that it fell by 36% to 101.9 tonnes on account of economic uncertainties, coronavirus led lockdown and volatility.