Gold price today: Gold rates surge after falling ₹5,000/10 gram in 5 days; settle below ₹40,000

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Gold prices futures fell below Rs 40,000 per 10 gram on Tuesday in domestic markets after a sharp drop over the past few sessions amid coronavirus pandemic. On MCX, April gold was up 0.13% to ₹39,570 per 10 gram after falling about ₹850 in the previous session.

On Monday, Spot gold slipped towards $1,511.30 per ounce, having slumped as much as 5.1% to its lowest since November.

In Friday's session, gold prices had dropped about ₹1,800 per 10 gram, tracking weakness in global markets. Also, silver continued to remain under pressure, with futures on MCX down about 0.11% to ₹36,168 per kg. 

In the previous session, silver futures had plunged over 10% or ₹4,200 per kg, also following a steep correction in global rates.

According to Livemint, gold shed about ₹5,000 per 10 gram in the previous five sessions, falling from ₹44,500 levels to around ₹39,500.

Experts are of the view that volatility is likely to remain for some more time in Gold. The precious metal has strong support at 38,400-39,000 levels.

“Precious metals also come under pressure due to heavy sell-off in global equities, increasing the margin on bullion futures, sell-off by gold ETF and lower consumer demand amid lockdown from coronavirus. We expect volatility to continue in both the precious metals,” Manoj Jain, Director, IndiaNivesh Commodities, told Moneycontrol.

“Gold is expected to trade in the range of $1,470-1,555 per troy ounce and silver is expected to be traded in the range of $12.20-14.40 per troy ounce. At MCX, gold prices are expected to be traded in the range of 38,400-40,500 levels,” he added.

Also Read: Gold price today: Gold rates fall Rs 516 at Rs 44,517 per 10 gm as rupee appreciates