Gold rate pares gains after surging over 1% As Coronavirus spooks equities

Gold rate pares gains after surging over 1% As Coronavirus spooks equities

Gold prices trimmed intraday gains after rebounding more than 1 per cent on Monday, as a continuing selloff across global equity markets increased the appeal of the yellow metal as a safe haven. MCX gold futures jumped by Rs 614 per 10 grams - or 1.39 per cent - from their previous close to touch Rs 44,772 per 10 grams at the strongest level of the day, before settling at Rs 44,393 per 10 grams. At 11:30 pm, the gold futures contract (delivery on April 3) were left with a gain of  0.53 per cent (Rs 235) compared with the previous close of Rs 44,158 per 10 grams. 

Analysts said gains in equity markets following sharp losses in past few sessions amid concerns about the coronavirus pandemic, which made investors rush to safer assets such as gold. Typically, gold shares an inverse relation with equities. 

According to Mumbai-based industry body IBJA or India Bullion and Jewellers Association, the indicative selling price of gold jewellery stood at Rs 44,010 per 10 grams (excluding GST) in the second half of the day.

Gold jewellery prices vary in different parts of India - the second largest consumer of the precious metal - due to factors such as excise duty, state taxes and making charges.