Gold prices hit six-month high as US dollar declines
The gold prices surged to a six-month high in the global market on Monday, as a weaker dollar and expectations of a pause in US interest rate hikes increased demand for the yellow metal.
Spot gold increased 0.5 percent to $2,012.33 per ounce while the US gold futures also rose 0.5 percent to $2,013.10.
The price in Mumbai and Delhi per 10 gm of 24-carat gold was Rs.62,290, while in Chennai it was Rs.62,780. In Bengaluru and Ahmedabad, the price was Rs.62,290 and Rs.62,340, respectively.
The global prices also impact domestic prices in India due to high imports of the precious metal.
The dollar depreciated further by 0.1 percent against a basket of major currencies and is currently at a two-month low, which makes the precious metal cheaper in other foreign currencies.
Expectations of low-interest rates make financial instruments less attractive for investors compared to gold, which is considered a safe investment.
In India, the average price of gold was at Rs.62,440 per 10 gm, up by over Rs.300 compared to the previous day although it varied among cities.
The demand for gold in the domestic market remains firm amid the marriage season, as the precious metal is gifted to brides and grooms in large quantities.
[With Inputs from IANS]
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It will touch Rs. ONE lac per 10 grams soon.