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Sudden jump in number of positive Covid cases and administrative restrictions in many cities have muted demand for gold
Gold prices inched higher on Thursday following international prices on the back of softening of the U.S. dollar and Treasury yields. MCX June gold contracts were trading higher by 0.38% at Rs 45,105 for 10 gm, at 3:30 pm. May silver futures on the other hand were trading 0.15% higher at Rs 63,910 a kg. Also, President Joe Biden’s $2 trillion-plus jobs plan further supported the metal’s appeal.
Stimulus measures usually increase the chances of higher inflation and gold is often considered as a hedge against it and hence we saw the up move today. However, experts don’t see a sharp rise in gold prices until the US dollar corrects sharply.
The optimism around recovery in the US economy from the pandemic, the progress on the vaccine front, higher yields and the lack of ETF buying also seem to be weighing on the gold prices.
The optimism of future gold price on MCX was, however, not reflected in the physical markets.
Most of the jewellers have seen demand from buyers cooling off in March due to the sudden jump in number of positive cases and administrative restrictions has muted demand. The decline in prices of gold in January and February had attracted many investors in the market pushing gold business back to 60-80% of pre-covid levels but growing health concerns have again dampened the sentiments.
The cost of the yellow metal varies in different cities of the country depending upon the national trend. Check the rates here:
Delhi: In the national capital, the cost of 22-carat gold stood at Rs 43,250 for 10 gm. While for 24-carat gold the buyer will have to pay around Rs 4,000 more that is Rs 47,180.
Kolkata: Rs 43,680 is the rate for 10 gm of 22-carat gold in Kolkata while for 24-carat the price is Rs 46,400 per 10 gm.
Mumbai: For 10 gm of 22-carat yellow metal the price is Rs 43,370, while for 10 gm of 24-carat gold the purchaser will have to pay Rs 1,000 more that is Rs 44,370.
Chennai: The 22-carat gold was trading at Rs 41,740 per 10 gm while for 24-carat gold of the same quantity the price was Rs 45,540.