Gold prices gained Rs 223 to Rs 49,440 per 10 gram to hit a fresh high in the Mumbai bullion market on weakness in dollar versus the rupee. The yellow metal gained after European Union leaders agreed on a stimulus package to revive the economy, while US Congress will discuss a new aid package this week.
The dollar index hit a low of 95.62 on July 21, the lowest since March, amid reduced safe-haven buying and concerns about rising US coronavirus cases.
Advisers to US President Trump and congressional Democrats were set to discuss the next steps in responding to the coronavirus crisis, with Congressional Republicans saying they were working on a $1 trillion relief bill.
The rate of a 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 37,080, Rs 45,287 and Rs 49,440, respectively, plus 3 percent GST.