Domestic gold prices extended gains on Monday amid gains in domestic equities. Global gold prices were steady on Monday, having posted their best day in a month in the last session after a US jobs report showed unemployment rising in August, suggesting the Federal Reserve might slow the pace of rate hikes.
MCX gold October futures climbed 0.25 percent to touch the intraday high of Rs 50,495 per 10 grams. White metal future, rose 0.3 percent to Rs 53,264 per kilogram.
On global benchmarks, Ravindra Rao, VP- Head Commodity Research at Kotak Securities said, "Gold has corrected sharply from recent highs however we may see weakness continuing unless there is a substantial correction in the US dollar and bond yields.”
Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said, "Unemployment rate in the US surged to 3.7 percent in August, which also supported precious metals. However, strong gains in the dollar index and the 10-year bond yields restricted gains."
Indian equity benchmarks —
BSE Sensex and
NSE Nifty50 — traded higher on Monday amid mixed cues from global markets. The rupee edged lower against the US dollar.
Dollar edged higher, hovering near two decade high. The dollar index — which gauges the strength in the greenback against six peers — climbed as much as 0.5 percent to touch 110.1.
Crude oil prices moved higher on Monday ahead of a meeting of the Organization of the Petroleum Exporting Countries (OPEC) scheduled later in the day.
