5 Things To Know About Gold Price Rise1) Domestic gold prices have also risen, tracking global cues. Futures contracts for October expiry rose by nearly 1 per cent to Rs 30,065 on MCX.
2) Some analysts expect global gold prices to advance further. "The support level (for gold) at $1,300 should be rather robust at this moment and because of the need for risk-aversion $1,375 should be possible as a price range," the Wing Fung Financial Group analyst said.
3) Some analysts also don't see an immediate Fed rate hike and the shrinkage of the US central bank's massive sheet. On Friday, after a US government report showed employers added fewer jobs in August than expected, some traders held to expectations that the Federal Reserve would wait until the middle of 2018 before raising rates. Gold is still likely to rise further after prices increased by 4.1 percent in August, the biggest monthly gain since January, said Mitsubishi analyst Jonathan Butler. "The technical uptrend is well established, there is continuing uncertainty over North Korea's nuclear ambitions and an imminent wrangle between Congress and the White House over the debt ceiling that must be solved by late September to avoid technical default," he said.
5) Investors were also looking ahead to a European Central Bank (ECB) meeting on Thursday. Markets are expecting no policy change from the ECB this month but the bank is likely to announce a reduction of its monthly asset purchases in October, according to a majority of economists in a Reuters poll. (With Reuters Inputs)