New Delhi, October 20 (IANS). Gold prices on the Multi-Commodity Exchange (MCX) witnessed a rise on Monday morning due to strong spot demand and weak US dollar.
In early trade, gold December futures on MCX were trading 0.78 per cent higher at Rs 1,28,005 per 10 gram, while silver December contracts rose 0.41 per cent to Rs 1,57,240 per kg.
This improvement in gold has come after a huge fall in the previous session, as global investors booked profits after US President Donald Trump’s statement of imposing tariffs on China.
Trump’s comments prompted traders to turn from safe investment assets like gold to riskier investments.
After a huge fall in the international market on Friday, gold prices reached $ 4,255 an ounce on Monday.
Experts say that now the attention of investors is focused on the upcoming talks between America and China. US Treasury Secretary Scott Besant and Chinese Vice Premier He Lifeng are scheduled to meet this week. Trump has expressed hope that some agreement can be reached from this discussion.
He also admitted last week that his proposed higher tariffs on Chinese goods are not sustainable.
A huge fall in gold prices was seen on Friday. MCX Gold December futures fell 2 per cent to Rs 1,27,320 per 10 grams, while US gold futures fell over 2 per cent to $4,213.30 per troy ounce.
Despite recent fluctuations, gold prices in the domestic spot market have increased by more than 70 per cent in the last one year.
Analysts attribute the surge to global economic uncertainties, strong central bank buying, expectations of interest rate cuts by the US Federal Reserve and rising investment in gold exchange-traded funds (ETFs).
Experts believe that gold will continue to find support if geopolitical tensions continue and the dollar remains weak.
“Investors have been attracted to gold as a defensive asset due to continued uncertainty in the US economy and delays in the release of data,” experts said.
He further said, “The bullish trend remains strong and as long as risk sentiment remains weak, gold prices are likely to remain high.”
–IANS
SKT/