Gold price in Indian commodity markets boosted for the second session on Monday. Prices of gold and silver gained more than 1.50% in the international market, promoted by a weaker dollar. The U.S. Federal Reserve’s new policy commentary for mote inflation tolerance also supported sentiment for Bullion.
Investors were optimistic about the U.S. Federal Reserve’s new strategy to adopt an inflation target to defeat full employment in the U.S.
Increasing Covid-19 cases also lead the commodity to cap losses. Worldwide, there was 253 lack confirmed cases and 8.50 lakh deaths from the coronavirus pandemic.
India published 78,512 new Covid-19 cases, taking the death toll to 64,617 and total COVID-19 infections to 36.21 lakh.
On MCX (Multi Commodity Exchange), Gold October Futures increased by Rs 215 at Rs 51,671, after reaching an intraday high of Rs 51,744 against the previous close of Rs 50,540 per 10 grams.
MCX gold futures currently trade at Rs 4,447 lower than the lifetime high of Rs 56,191 per 10 grams, hit on August 7.
On MCX, the precious metal has increased by 41.5% to an all-time high since the beginning of the year.
On December 31, 2019, Bullion stood at Rs 39,000. On August 7, 2020, it reached a peak of Rs 56,191 per 10 grams.
Meanwhile, Silver September Futures advanced Rs 1,289 and reached Rs 70,126 per kg today after they hit an intraday high of Rs 70,474 per kg. on August 7, Silver Futures touched its high of Rs 77,949.
Gold and silver rates increased to their highest level in nearly two weeks on Monday. The dollar fell after U.S. Federal Reserve’s new policy framework suggested that interest rates would remain intact for some time. The dollar index dipped to a record low (for two years) against Asian currencies.
In the international spot market, spot gold increased by 0.3% at $1,969.98 per ounce, after reaching $1,976, its peak since August 19. Comex gold boosted 0.14% at $1,967 per ounce, while US gold futures gained 0.2% to $1,978.70. Silver climbed 1.6% to $27.94 per ounce.
Overall, the yellow metal has boosted 30% since the beginning of the year. However, the bullion metal dipped 0.2% this month.
24-carat gold value in the national capital stood at Rs 54,560 per 10 grams.
The price of 24-carat gold was at Rs 53,600 per 10 grams in Chennai. In Mumbai, the rate for 24-Carat gold was at Rs 51,470 as per Good Returns website.