New Delhi: After seeing downtrend in the early session, gold prices once again surged in India, extending this month’s gains upto ₹4,000. On MCX, gold futures rose 1% to ₹47,836 per 10 gram while silver surged 0.9% to ₹69,333 per kg.
Gold rates in India have rebounded from ₹44,000 at the start of this month, supported by rally in global rates amid weakness in dollar and softening US bond yields. On MCX, gold has support at ₹45,880, says Geojit at a note.
In global markets, gold rates edged higher, supported by a weaker dollar. Spot gold was up 0.8% to $1,789.99 an ounce. The dollar index was down 0.48% to 91.105. Weaker dollar makes gold less expensive for other currency holders.
Among other precious metals, silver rose 0.4% to $26.05 per ounce after hitting a near one-month high in the last session.
Technically, as long as gold holds above $1,760 level, the outlook for gold is remain positive, say analysts.
“Sustaining trades above $1,760 may strengthen prices and there are chances of recovery upticks which may lead prices towards $1820 or more. At the same time a direct turn below $1725 is a bearish signal,” Geojit said in a note.
The dollar weakened and the Treasury yields remained subdued after the US Federal Reserve recently reiterated its view that any spike in inflation was likely to be temporary. The US central bank has also reiterated its stance to keep monetary policy accommodative.
This week, on gold traders’ watch will be on European Central Bank rate decision and President Christine Lagarde briefing, due on Thursday. Also, the US will release manufacturing and services purchasing managers data on Friday.
Gold was at $1,778.97 an ounce, climbing 0.1%.