Gold Price In India: Domestic gold and silver futures rebounded on Thursday as the dollar halted its recent gains, making precious metals cheaper for those dealing in other currencies. Multi Commodity Exchange (MCX) gold futures (due for an October 5 delivery) climbed by Rs 350 - or 0.68 per cent - to close at Rs 51,752, and silver futures (December 4) settled at Rs 69,005, up Rs 562 - or 0.82 per cent - from their previous close. The gold and silver contracts had risen to as high as Rs 51,851 and Rs 69,768 respectively during the volatile session.
In the international market, gold gained 1.04 per cent to $1,975.20 per ounce at the strongest level recorded on Thursday, as the dollar retreated on weaker-than-expected US jobs data and as the European Central Bank (ECB) kept its policy unchanged. Silver jumped as much as 2.51 per cent to $27.76 per ounce. (Also Read: Is Silver The New Gold?)
The US dollar index - which gauges the greenback against six currencies - fell 0.60 per cent during the session, boosting gold's appeal as a safe-haven bet.
Meanwhile, a rebound across Asian equity markets limited the upside in precious metals. Typically, gold and equities share an inverse relationship, wherein an boost in the risk appetite sends investors away from safe-haven bets such as the yellow metal.
Back home, spot gold settled at Rs 51,476 per 10 grams on Thursday, and silver at Rs 66,091 per kilogram, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets. Some analysts say gold is still in a bullish trend from a long-term perspective due to the coronavirus pandemic. (Also Read: Gold "Dream Run" May Continue: Analysts)
What Analysts Say
"Gold has witnessed mixed trade in last few sessions but seems to be holding in a broad range of $1,900-2,000/oz and unless either side is broken, we may see directionless trade. Gold has witnessed a mixed trade, also reflecting the movement in the US dollar and equity markets," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Increasing challenges to global economy may increase gold's safe haven appeal while the US central bank's dovish stance and concerns about US economy may limit upside in the dollar, thereby supporting gold," he added.