Gold price declined Rs 703 to Rs 43,173 per 10 gram in Mumbai bullion market on the back of a strong dollar-rupee. Major gold trading centers in the country have been shut due to the lockdown announced by state governments to prevent the spread of novel coronavirus, or COVID-19, disease.
The US Dollar Index, measured against a basket of six currencies, gained 0.78 percent to 100.060.
The rate of 10 gram 22 and 24-carat gold in Mumbai was Rs 39,546 plus 3 percent GST and Rs 43,173, respectively. 18-carat gold quoted Rs 32,380 plus GST in the retail market.
“Gold prices traded in a narrow range and gains for the commodity remained capped as the dollar held firm, while fears of further economic fallout from the coronavirus pandemic provided some support to bullion. Lower interest rates and looser economic policies are likely to benefit gold prices,” said Navneet Damani, Vice President, Motilal Oswal.
Market participants will keep an eye on the US Consumer Confidence number. A weaker than expected number will keep supporting the precious metals pack.
The broader trend on Comex could be $1,595-1,630 and on domestic prices could hover between Rs 42,960 and Rs 43,800 per 10 gm, Damani added.
The gold/silver ratio currently stands at 109.16 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices rose Rs 50 to Rs 39,550 per kg from its closing on March 30.
In the futures market, gold rate touched an intraday high and low of Rs 43,840 and Rs 43,130 on the MCX, respectively. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 44,961.
Gold futures for delivery in April slipped Rs 524, or 1.24 percent on the MCX trading at Rs 43,300 per 10 gram in evening trade. The same for June delivery eased Rs 381, or 0.88 percent, at Rs 43,000 per 10 gram. August contracts are down Rs 319, or 0.73 percent at Rs 43,025.
The value of the April and June contracts traded so far is Rs 31.85 crore and Rs 1,472.90 crore, respectively.
Similarly, Gold Mini contract for April declined Rs 103, or 0.23 percent at Rs 43,780.
Brokerage firm Motilal Oswal said the spread and impact of coronavirus and central bank actions will provide direction to precious metal prices.
At 12:01 pm (GMT), spot gold was down $20.20 at $1,601.51 an ounce in London trading.