Mumbai/Chennai: Gold rates across the country cooled off to a month-low even as investors reportedly made a scramble for holding cash to secure equity investments.
On Tuesday, domestic Gold rates cooled in tandem with international benchmark and spot rates that sunk below $1500 per troy ounce mark. The London Bullion Market Association reported Gold at $1487.70 per troy ounce (31.1035 grams) on Monday. Spot Gold in international markets is trading range-bound in levels of $1482.34 - $1519.30.
In Indian commodity markets, Gold futures on the MCX lost by 5 percentage points in the session on Monday. On Tuesday, the MCX Gold was bleeding with an intra-day loss of 1.44 percent or Rs 570 to trade at Rs 38,948 for April futures (at the time of writing this story).
Retail rates for 22 Karat and 24 Karat have cooled to a month low across several Indian cities. For instance, jewellers in Chennai quoted a price of Rs 3870 per gram (AM rates). The rates on 11 Feb'20 were reported at Rs 3869 per gram in Chennai.
Likewise, rates in Mumbai have cooled to Rs 3858.50 per gram. The last time rates hovered at this level in Maximum city were as early as January. These rates have been brought by Sify.com that tracks rates across major Indian cities. The rates in Indian cities differs owing to several factors. The retail rates are exclusive of charges such as making charges and 3% GST.
Rates for silver which is more or less similar across the country too witnessed a slump with retailers quoting Rs 36,640 - 39,000 per kilo.
With the spotlight on coronavirus, reports suggest a severe dent in Gold outlook with investors scurrying off to retain cash instruments. The scare of coronavirus has also dented jewelry business in India. With several states desisting citizens from travelling to control the pandemic Coronavirus, jewelry stores are witnessing lower footfalls. The situation is reported as grim until 31st March 2020. For instance, the locals in Pune city were reported as bulking on supplies on Monday preparing themselves for the harsh eventuality of shops selling non-essential stuff shutting down.
The festival of Gudi Padwa on March'25 is widely celebrated in Maharashtra and as Ughadi in Karnataka. A lower gold rate presents itself as an opportunity for many families to invest. But the bigger question is will the pandemic Coronavirus force buyers to stay indoors?
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