Domestic gold prices gained in the opening session on Monday as dollar rates dropped and Indian markets edged lower amid weakness in oil and gas, metal and financial shares.
On MCX,
yellow metal traded higher by nearly 0.25 percent at Rs 50,379 per 10 grams. Meanwhile, Silver was up nearly 0.7 percent at Rs 55,585 per Kg.
The rise in metal prices was supported by nearly 0.2 percent drop in dollar rates. At the time of writing this report, as US Dollar Index Futures was at 112.995, the rupee opened flat.
Also, Indian equity benchmarks
BSE Sensex and NSE Nifty50 opened lower in initial trend on Monday tracking weak global cues across global markets. Weakness in oil & gas, metal and financial stocks offset the gains in IT shares.
Meanwhile, oil prices were trying to bounce, after sinking more than 6 percent last week as fears of a demand slowdown outweighed OPEC's plans to cut output. Brent firmed 64 cents to $92.27 a barrel, while US crude rose 57 cents to $86.18 per barrel.
Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, expects strong dollar and Fed rate hike fears to continue to pressure gold and silver in the international markets. "But both are highly oversold and some short coverings are expected at lower levels," he said.
Meanwhile, Ravindra Rao, Vice-President, Head of Commodity Research at Kotak Securities, said worsening global growth outlook might boost the safe-haven buying at lower levels.
