Gold and silver prices rose today in Indian markets, following positive trend in global rates. On MCX, October gold futures rose 0.3% to ₹51,600 per 10 gram to extend gains to the second day. September silver futures on MCX surged 2% to ₹67,350 per kg. In the previous session gold had surged ₹500 per 10 gram while silver had gained about ₹1,000 per kg. Gold prices in India had hit a record high of ₹56,200 on August 7 and since then prices have been volatile in tandem with movement in global rates.
In global markets, gold prices today hit a two-week high, supported by a weak US dollar. Spot gold was up 0.4% at $1,971.68 per ounce, after hitting $1,976 in early trade – its highest since August 19th. US gold futures rose 0.4% to $1,982.50. The dollar index fell 0.2% and was on track for its fourth consecutive monthly decline.
Among other precious metals, silver jumped 1.7% to $27.94 per ounce while platinum rose 0.4% to $935.06.
Gold was also supported by the US Federal Reserve’s new policy framework which suggested that interest rates would remain low for some time, say analysts. Last week, Fed Chairman Jerome Powell said the central bank would adopt an average inflation target, meaning rates are likely to stay low for longer.