Gold Price Today: Domestic Gold Futures Hold Rs 51,600 As Shares Rise On COVID-19 Treatment Hopes

Gold Price Today: Domestic gold prices slid tracking global rates on Monday as hopes about a treatment for COVID-19 boosted investors' risk appetite, pushing equities higher. Multi Commodity Exchange (MCX) gold futures - due for an October 5 delivery - dropped by Rs 386 - or 0.74 per cent - to hit Rs 51,630 at the weakest level recorded during the session, compared to their previous close of Rs 52,016. The MCX gold futures contract settled at Rs 51,659, down Rs 357 - or 0.69 per cent - from its previous close. 

In the international market, spot gold fell after the US drug regulator authorised the use of blood plasma from recovered COVID-19 patients as a treatment option, while the dollar held firm.

Spot gold was last seen trading 0.4 per cent lower at $1,932.48 per ounce on Monday, having hit a one-week low of $1,910.99 on Friday. 

Domestic stock markets moved higher backed by buying interest in private-sector banks, as more businesses resumed operations after the coronavirus pandemic-triggered lockdowns, although gains were limited as COVID-19 cases in the country crossed 3 million.

The S&P BSE Sensex index rose as much as 1.09 per cent to 38,853.96 and the broader NSE Nifty 50 benchmark climbed to as high as 11,486.75, up 1.01 per cent from its previous close.

Gold jewellery price stood at Rs 51,992 per 10 grams excluding Goods and Services Tax, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets, benefiting from a flood of capital into the world economy and investors seeking a relatively safe location to put their money in.

What Analysts Say

"Price seems to have found a base near $1900/oz but struggled to manage above $2000/oz level. Currently, trend in US dollar and US 10 year bond yield is the key price determining factor for gold," said Ravindra Rao, VP-head commodity research, Kotak Securities.:

"Gold may continue to witness choppy trade unless there are fresh triggers however we may see buying interest at lower levels amid persisting virus risks and increased US-China tensions," he said.