New Delhi, Oct 20 (IANS) Gold prices rose on Monday morning on the Multi-Commodity Exchange (MCX), supported by strong spot demand and a weaker US dollar.
During the early trade, MCX Gold December futures were trading 0.78 per cent higher at Rs 1,28,005 per 10 grams, while Silver December contracts gained 0.41 per cent to Rs 1,57,240 per kg.
The recovery in gold came after a steep fall in the previous session, as global investors had booked profits following US President Donald Trump’s comments on China tariffs.
His remarks pushed traders to shift from safe-haven assets like gold to riskier investments.
In the international market, gold prices climbed to $4,255 per ounce on Monday after a sharp decline on Friday.
Experts said the focus has now turned to the upcoming talks between the US and China. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to meet this week, with Trump expressing optimism that the discussions could lead to an agreement.
He also admitted last week that his proposed high tariffs on Chinese goods were unsustainable.
On Friday, gold prices had seen a sharp sell-off. MCX Gold December futures dropped 2 per cent to Rs 1,27,320 per 10 grams, while US gold futures fell over 2 per cent to close at $4,213.30 per troy ounce.
Despite the recent volatility, gold prices have risen more than 70 per cent in the domestic spot market over the past year.
Analysts attribute this surge to global economic uncertainties, strong central bank buying, expectations of US Federal Reserve rate cuts, and increased inflows into gold exchange-traded funds (ETFs).
Experts believe gold will continue to find support if geopolitical tensions persist and the dollar remains weak.
“The sustained uncertainty in the US economy and delayed data releases have kept investors inclined toward gold as a defensive asset,” experts said.
“With momentum staying firmly bullish, gold is likely to remain elevated as long as risk sentiment stays weak,” they added.
–IANS
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