Gold prices in India fell for the fourth day in a row amid a stronger rupee and profit-taking at higher levels. On MCX, August gold futures fell 0.34% to ₹47,882 per 10 gram. Silver futures on MCX also declined 0.36% to ₹49,000 per kg. Gold prices in India had hit a record high of ₹48,982 per gram in the futures market on Wednesday, tracking a rally in global markets. Since then it has corrected about ₹1,000 from those highs.
Gold prices in global markets were flat today as a surge in coronavirus infections across the world propped up the safe-haven demand of the precious metal. Spot gold was up 0.1% to $1,775.97 per ounce. Among other precious metals, platinum rose 0.8% to $806.30 while silver eased 0.1% to $18.02.
Spot gold has risen 17% this year as lower interest rates around the world and widespread stimulus measure from major central banks have boosted demand for the metals. Gold is widely viewed as a hedge against inflation and currency debasement.
Asian equity markets were firm near four-month highs amid super-cheap liquidity.
The fourth tranche of sovereign gold bonds of this year opened for subscription today. The issue will close on July 10. The government is offering gold (0.999 purity) at at ₹4,852 per gram per gram while investors applying online and making payment through digital mode will get a discount of ₹50 per gram.
Physical demand of gold in India remained muted amid soaring prices and coronavirus crisis. Dealers offered discounts of about $22 an ounce over official prices last week, higher than $18 offered during the previous week, Reuters reported. Domestic prices in India include 12.5% import duty and 3% GST.