Domestic gold prices extended gains in choppy trade on Friday as domestic equities edged lower amid weakness in markets around the world. Global gold prices declined pushed by a nearly two-decade high dollar.
MCX gold October futures climbed 0.1 percent to touch the one-week and intraday high of Rs 50,057 per 10 grams. White metal futures rose 0.4 percent to Rs 58,250 per kilogram.
The dollar index — which gauges the strength of the greenback against six peers — was 0.1 percent up at 111.3 on the last count.
“Gold has weathered the central bank decisions and managed to hold above recent lows indicating that dip buyers have emerged. However, a sustained rise is unlikely until the US dollar corrects significantly," said Ravindra Rao, VP-Head Commodity Research at Kotak Securities.
Brent crude and WTI futures dropped 0.6 percent each on Friday to $89.3 and $82.4 a barrel respectively, amid fears that a slowdown in global growth will fuel lower demand.
Indian equity benchmarks opened in red on Friday tracing negative cues across global markets. The rupee depreciated to a record low of 81.18 against the US dollar before rebounding 35 paise.
