Gold shines on MCX amid hopes of India–US trade deal; Rupee opens stronger

Mumbai, Oct 23 (IANS) Gold prices rose on the Multi Commodity Exchange (MCX) on Thursday morning amid reports that India and the United States may soon sign a trade deal.

The optimism over the potential agreement lifted investor sentiment in precious metals.

In the early trade, MCX Gold December futures were trading 0.89 per cent higher at Rs 1,22,938 per 10 grams.

Similarly, MCX Silver December contracts gained 0.93 per cent to trade at Rs 1,46,915 per kilogram.

According to analysts, MCX gold prices for the December expiry are expected to move in a range of Rs 1,21,500 to Rs 1,23,000 per 10 grams.

However, in the global market, gold prices edged lower due to a stronger US dollar, as investors awaited key inflation data from the United States later this week.

The data is likely to influence the Federal Reserve’s next move on interest rates.

As of 3:10 a.m. GMT, spot gold was down 0.2 per cent at $4,084.29 per ounce, while U.S. gold futures for December delivery rose 0.9 per cent to $4,100.90 per ounce.

The US dollar index gained 0.2 per cent against major currencies, making gold more expensive for foreign buyers.

“Gold price after a significant rise moved into a new phase and continuous to be in highlights for being volatile but, on the opposite side,” analysts said.

“On track for its biggest yearly rise since 1979, gold's 54 per cent rise YTD has seen it break through key psychological resistance levels at $3,000 per troy ounce in March and $4,000 in October,” they added.

Meanwhile, the Indian rupee opened stronger after the Diwali break, supported by optimism surrounding the trade deal talks with the US.

The rupee opened at 87.83 against the dollar, up 10 paise from its previous close of 87.93.

Currency and bond markets had remained closed on October 21 and 22 due to Diwali holidays.

--IANS

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