Gold prices on Monday inched higher on Monday to trade near a three-month peak, owing to a positive global cues. On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.18% at Rs 47,835 for 10 grams at 0935 hours. May silver futures were trading 0.95% higher at Rs 72,111 a kilogram.
Spot gold was up 0.1% at $1,831.72 per ounce by 0131 GMT, after hitting its highest since February 11 at $1,842.91 in the previous session, according to Reuters. US gold futures were up 0.2% at $1,834.00 per ounce.
The dollar index languished near a more than two-month low versus major peers, making gold less expensive for other currency holders, according to Reuters.
“Gold prices edged higher after weaker than expected US jobs data cemented hopes that interest rates will stay low for some time, pressuring the dollar and boosting bullion’s appeal. The dollar index languished to more than two month low versus major peers; whereas US yields hovered below 1.6 level,” commented Navneet Damani, Vice President – Commodities Research, Motilal Oswal Financial Services.
“After this weak data, we saw a mixed reaction from the Fed as few continued to keep the optimism high for the economic growth whereas others suggested caution. Speculators increased their bullish positions in COMEX gold and silver contracts in the week to May 4, the U.S., according to CFTC . Broader range on COMEX could be between $1818- 1870 and on the domestic front prices could hover in the range of Rs 47,750- 48,220,” he added.
Commenting on the gold price rate, Amit Gupta, Managing Director, SAG Infotech said, “The gold rates are really pinched to the US job data and currently everyone can only link themselves with it. However the upside of rates is the next thing to watch out, as it can still climb higher.”
“All this can be a more effective in Indian sense and has already showed us through the increased in major metropolitan cities across the country. The government right now is in a deep crisis of COVID and hence given a sideways to the traders to make out a broader carving out of the gold,” he added.
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