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Domestic Gold Futures Move Higher To Rs 51,599 Mark As Equities Ease

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). 

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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.