Gold prices remained higher in the domestic and international markets on Monday. On the Multi Commodity Exchange, gold futures for December delivery rose 0.8% to Rs 1,28,556 per 10 grams. Silver contracts were flat at Rs 1,55,518 per one kilogram.
In the spot market, gold was quoted at Rs 1,31,425 on Diwali day..
On the international market, the yellow metal edged up, recouping after a steep drop last week from a record high, on President Donald Trump's comments that alleviated US-China trade tensions and drove investors towards riskier assets. Bullion rose 1.5% to $4,272 on Comex.
Silver prices fell as much as 1.2% before trimming losses, after closing 4.3% lower Friday on signs that a squeeze in London stockpiles may be easing, Bloomberg reported.
Local gold prices are expected to witness some consolidation and mild correction this week as the recent record-breaking rally looks overstretched and physical demand eases after the festive rush, analysts said.
After hitting fresh highs in global and domestic markets, bullion may trade in a narrow range, with investors eyeing the US funding bill, key global data releases, and remarks from Federal Reserve officials ahead of the Oct. 28-29 policy meeting, they added.
Dhanteras Sales
Indian consumers spent an estimated Rs 1 lakh crore during the Dhanteras festival this year, driven by robust gold and silver purchases despite sharp price increases, a leading traders' body said on Saturday.
The Confederation of All India Traders said gold and silver sales alone accounted for Rs 60,000 crore of the total, marking a 25% increase from last year, as shoppers flocked to bullion markets despite gold prices surging 60% year-on-year to cross Rs 1,30,000 per 10 grams.
Soaring gold prices led Indian buyers to choose coins and bars over jewellery during the Dhanteras, fuelled by hopes that the precious metal's glittering rally would continue, industry officials told Reuters.
Dhanteras, celebrated on the thirteenth day of the Hindu month of Kartik, is considered an auspicious day for purchasing gold, silver, utensils and other items symbolising prosperity. It marks the beginning of the five-day Diwali festival.
(With inputs from PTI)
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