Gold slips ahead of Diwali: MCX 24-carat futures fall 1.35% to Rs 1,49,449 per 10 grams
Gold futures on the MCX fell Rs 2,050 per 10 grams as the market reopened after a two-day break, and silver also declined.
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Gold prices fell when the market reopened today after a two-day holiday. Volatility in the retail and wholesale gold markets has not yet subsided.
On the Multi Commodity Exchange (MCX), 24-carat gold futures dropped 1.35 per cent to Rs 1,49,449 per 10 grams, a fall of Rs 2,050. In the previous session, the price had closed at Rs 1,51,499 per 10 grams.
In the bullion market, 24-carat gold is currently at Rs 1,49,510 per 10 grams. In the international market, gold has reached $4,187.90 per ounce. Elsewhere, the price of 24-carat gold was reported to be steady at Rs 1,51,130 per 10 grams. The fall may offer buyers of gold jewellery a good opportunity.
According to the IBJA, the morning rates were as follows: 24-carat gold at Rs 1,48,061 per 10 grams, 22-carat at Rs 1,35,624, 18-carat at Rs 1,11,046 and 14-carat at Rs 86,616 per 10 grams. Silver was at Rs 2,20,295 per kg.
Today's rate for 24-carat gold is the same in Mumbai, Pune, Nashik, Nagpur, Kolhapur, Jalgaon, Sangli and Chhatrapati Sambhajinagar, at Rs 1,50,980 per 10 grams in all these cities.
Gaurav Garg, head of research at brokerage platform Lemon, said the US dollar has come down from its recent high. Concerns over inflation persist, but this has still given some support to gold and other precious metals. He said silver also benefited from the broad recovery in precious metals. The continued fall in the Indian rupee has also raised the domestic price of imported goods, he added.
Praveen Singh, head of the commodities division at Mirae Asset Sharekhan, said that, owing to a decline in the US dollar index and in crude oil prices, spot gold in the international market was trading about 4,180 dollars per ounce, up more than 1 per cent.
Market experts expect gold prices to stay in a limited range in the coming days, though a slight rise is possible. The next move in gold will depend on the direction of the US dollar and signals from global markets.
Experts have also cautioned that if crude oil prices rise suddenly, gold could come under pressure again. Investors and buyers should therefore keep an eye on gold's price swings and on global economic developments.
