Domestic Gold Futures Move Higher To Rs 51,599 Mark As Equities Ease
Spot gold climbed up as much as 0.65% to $1,960.50 per ounce
Gold Price In India: Domestic gold futures started the week on a positive note as weakness in the US dollar supported the yellow metal. Multi Commodity Exchange (MCX) gold futures (due for an October 5 delivery) gained 0.55 per cent - or Rs 280 - to Rs 51,599. At 4:38 pm, the gold contract traded 0.20 per cent - or Rs 104 - higher at R 51,423 on the bourse. Analysts awaited the outcome of the US central bank's policy meet due this week for cues, while a downward trend in global equities supported precious metals.
In the international market, gold rose on Monday supported by a weaker dollar. Spot gold climbed up as much as 0.65 per cent to $1,960.50 per ounce. Investors awaited the scheduled policy meeting of the Federal Reserve on Wednesday for more clarity on monetary policy in the world's largest economy. (Also Read: Is Silver The New Gold?)
The US dollar index - which gauges the greenback against six currencies - declined as much as 0.35 per cent on Monday. Gold is often considered a hedge against inflation and currency debasement.
Back home, spot gold quoted at Rs 51,386 per 10 grams on Monday, excluding GST, according to Mumbai-based India Bullion and Jewellers Association (IBJA).
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets. Some analysts say gold is still in a bullish trend from a long-term perspective due to the coronavirus pandemic. (Also Read: Gold "Dream Run" May Continue: Analysts)
What Analysts Say
"Gold ended higher last week but moved within a broad range of $1,911-1,974/oz. Gold has witnessed mixed trade reflecting choppiness in equity markets and US dollar index," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"We may see directionless trade continuing unless either side of $1,900-2,000/oz range is broken," he added.