Gold Rate In India: Domestic gold futures hovered around the Rs 55,000 mark on Monday, as global rates of the yellow metal eased with investors keeping a close eye on US-China relations ahead of their scheduled trade talks. Multi Commodity Exchange (MCX) gold futures - due for an October 5 delivery - climbed up as much as 0.43 per cent (Rs 237) to Rs 55,098 during the session, before ending at Rs 54,990, up 0.37 per cent - or Rs 201 - from their previous close. (Track Gold Rate Here)
(Gold futures had risen to an all-time high of Rs 56,191 last week)
At the current level, gold futures are less than 2 per cent off an all-time high of Rs 56,191 registered on Friday.
In the international market, spot gold fell as the dollar held onto gains made after better-than-expected US payrolls data. It was last seen trading 0.30 per cent lower at $2,029.19 per ounce.
Precious metal prices have broken a series of records over the past few weeks amid rising COVID-19 cases around the globe, and worsening ties between the US and China - the world's two largest economies. Typically, any sign of uncertainty in the financial markets boosts the appeal of gold as a safe-haven bet, as investors rush away from riskier asset classes. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)
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The opening rate of gold jewellery stood at Rs 55,550 per 10 grams on Monday, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA). Gold jewellery prices vary in different parts of the country, due to factors such as taxes and making charges.
Domestic stock markets ended higher, as a slew of upbeat pharmaceutical earnings reports and a rally in defence stocks helped investors momentarily shift focus from rising coronavirus cases in the country. The S&P BSE Sensex index ended up 0.37 per cent at 38,182.08 and the broader NSE Nifty 50 benchmark closed with a gain of 0.54 per cent at 11,270.15.
What Analysts Say
"Gold rallied sharply in last two weeks and was severely overbought, and this has made it vulnerable to profit-taking. The selloff on Friday was triggered by the better-than-expected US jobs report which helped the US dollar index recover from two-year lows," said Ravindra Rao, VP-head commodity research, Kotak Securities.
The dollar index - which measures the greenback against six currencies - was last seen trading 0.19 per cent higher, having risen as much as 0.28 per cent earlier on Monday.
"If the US currency manages to extend Friday's recovery, gold may fall further.”
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