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Gold price reclaims Rs 46,000 mark amid oil price jitters for equity markets

Internationally, gold prices were falling marginally amid rising dollar. Prospects of a pickup in manufacturing and a possible restart of activity in the US, also turned commodity investors cautious.

Rupa Burman Roy        Last Updated: April 21, 2020  | 19:42 IST
Gold price reclaims Rs 46,000 mark amid oil price jitters for equity markets
As gold is seen as a safe investment during volatile times, demand outlook for the precious metal looks quite strong, suggest commodity traders

Gold prices in domestic commodity markets bounced back on Tuesday as equities fell globally and US crude Futures plunged.

On MCX, gold June futures were trading 286 points higher at 46,000 per 10 gm. Earlier, the gold MCX had touched an intraday high of 46,050.00 as against the last closing value of 45,714.

Internationally, gold prices were falling marginally amid rising dollar. Prospects of a pickup in manufacturing and a possible restart of activity in the US, also turned commodity investors cautious.

Signs that the spread of the coronavirus is being contained dampened demand for the safe haven asset, experts suggested.

Overseas, COMEX Gold futures was trading 0.08% or 1.30 points lower at the day's high of USD 1,700.30 per ounce. Ealrier COMEX gold closed at USD 1,701.60 per punce on Monday.

Equity markets worldwide turned red as US oil Futures collapsed to historic lows over low demand and storage facilities reaching their limits.

As gold is seen as a safe investment during volatile times, demand outlook for the precious metal looks quite strong, suggest commodity traders.

"A strong dollar and optimism that top economies will restart activities after the lockdown may hit  demand for the commodity," said Hareesh V, Head Commodity Research at Geojit Financial Services.

Global recession worries and hopes of stimulus from central banks limited the downfall in bullion metal, he further added.

The coronavirus-induced  lockdown worldwide has also caused substantial decline in oil market. US Crude oil fell to the lowest in more than two decades, as storage facilities to store crude were filled globally, insufficient to cope with plunging demand for the commodity.

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