Gold Rate Today: Investors should be happy as the price of gold and silver has dropped a little after rising sharply. You can invest by purchasing these precious metals. The days of ladies wearing gold jewellery to accessorise their outfits for special occasions are long gone. Because of the asset’s consistent long-term profitability and the economy’s unpredictable growth pace, institutional investors are also purchasing it. Furthermore, by serving as a diversifier, it lessens losses incurred during periods of stock market volatility. Precious metal is a common example of a liquid asset that can be helpful during uncertain times. Inflation and currency depreciation are prevented by the yellow metal.
What is gold futures contracts and what should you do to avoid the risk?
Gold futures contracts are available from the NSE, BSE, and Multi Commodity Exchange (MCX) in India. It is primarily used as a hedging tool against price risk by companies involved in the production and trading of gold. The exchanges also provide the fold futures in small-scale denominations to meet the needs of each investor. Trading can be difficult even for experienced investors who have a strong understanding of derivatives. You can purchase and sell gold at a later time by entering into a gold futures contract. Although the value is determined at the time of transaction, the gold contract is settled on the maturity date. To reduce the risk of volatility, investors should keep a margin until the settlement. Depending on the expected volatility in the amount, the range can be between 4% and 10%.
Price of gold in some major cities
| Name of cities | Prices of 22k gold in rupees |
| Mumbai | 57800 |
| Delhi | 57950 |
| Kerala | 57800 |
| Pune | 57800 |
| Lucknow | 57950 |
| Patna | 57950 |
| Nagpur | 57800 |
| Chandigarh | 57800 |
| Surat | 57950 |
| Bhubaneswar | 57950 |
Gold Rate Today: Checkout the rates on MCX
The historically low correlation of gold with other financial assets makes it a popular choice among investors as a hedge against potential economic downturns. Rising gold prices usually result in lower bond yields. With a slight decrease of 0.02 percent, gold futures with a February 5, 2024 maturity date were trading at Rs 61950 per 10 grams on the MCX. The price of silver futures, which mature on March 5, 2024, saw an increase of 0.03 percent, and were trading at Rs 71795 per kg on the MCX.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)
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