Gold rate today decline, slip below Rs 40,000 per 10 gram
Gold rate slipped in the opening trade while silver gained on Thursday amid global equity market rout due to rising cases of coronavirus. Inventors’ preference to save capital is weighing on bullion counters.
As per the government of India, the total number of confirmed Covid-19 cases in the country were at 169 with three deaths till now. Tamil Nadu reported the first case of community migration increasing the worries onStreet.
Gold futures were down 1.26 per cent to Rs 39,223 ..
Gold prices on Wednesday rose by Rs 311 to Rs 40,241 per 10 gram in the national capital amid rupee depreciation and higher buying, according to HDFC Securities. Silver prices, however, fell by Rs 468 to Rs 35,948 per kg against the previous close of Rs 36,416 per kg.
"Spot gold for 24 karat in Delhi was trading up by Rs 311, reflecting Tuesday's gains of international gold prices. Gold prices in India also got support from rupee depreciation with spot rupee trading around 13 paise weak ..
Gold Rates - Spot & Futures (.995 purity)
Rs/10 grms (AHMEDABAD)Gold Future Price
Rs/10 grms Expiry: 03-Apr-2020
People may avoid staying invested in stocks or commodities and prefer to sit on cash to ensure capital safety rather than worrying about the return. This situation typically arises when economic uncertainty or geopolitical issues spike. The way central banks the world over are cutting interest rates is creating panic in investors' minds as things may worsen from here on, said Sunilkumar Katke, Head of Commodities and Currency at Axis Securities.
Investors were forced to liquidate their precious metal positions in favour of cash in order to meet margin calls to cover losses in the stock market. The margin requirement is increasing with the fall in commodity prices.
Gold may see a level of $1,400 on downside on extreme panic situation, he added.
According to Navneet Damani, Vice President, Motilal Oswal, gold prices rose nearly 3 percent, following a steep decline in the previous session, as the dollar and global equities fell sharply after the US Federal Reserve preponed their policy meet which was scheduled later this week and announced another surprise interest rate cut.
The Fed slashed rates back to near zero, restarted bond buying and joined other central banks to ensure liquidity in dollar lending to help put a floor under a rapidly disintegrating global economy amid coronavirus pandemic.
The gold/silver ratio currently stands at 109.15 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices declined Rs 6,445 to Rs 36,640 per kg from its closing on March 13.
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