Gold Price In India: Domestic gold futures moved higher on Tuesday tracking global spot rates, ahead of the beginning of a scheduled two-day meeting of the US central bank. Multi Commodity Exchange (MCX) gold futures – due for an October 5 settlement – rose by Rs 495 – or 0.96 per cent – to quote at Rs 52,182 at the strongest level recorded during the session. The gold contract settled at Rs 52,120, up Rs 433 – or 0.84 per cent – for the day. (Track Gold Futures Here)
In the international market, spot gold (Comex) rose to as high as $1,968.80 per ounce on Tuesday, its highest intraday level recorded since September 2, as a softer dollar and expectations the Federal Reserve will reinforce its accommodative monetary policy supported the yellow metal. (Also Read: Is Silver The New Gold?)
The US dollar index – which gauges the greenback against six currencies – declined as much as 0.29 per cent during the session.
Back home, spot gold settled at Rs 51,893 per 10 grams on Tuesday, excluding Goods and Services Tax, according to Mumbai-based India Bullion and Jewellers Association (IBJA).
— IBJA (@IBJA1919) September 15, 2020
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 price continues to remain stuck in a broad range of $1,900-2,000/oz and unless there are major triggers, we may see directionless trade ahead. Mixed activity in ETF (exchange traded fund) flows also shows lack of direction in the market,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
“Gold may remain choppy amid lack of clear cues, however general bias may be on the upside owing to increasing challenges to global economy and hopes of dovish stance of major central banks,” he added.