The yellow metal's December futures traded at Rs 38,287 per 10 gram, up by Rs 395 or 1.04 percent on the MCX around 09:20 AM IST.
Gold prices rebounded in futures trade on October 3 tracking sell-off in equities and fresh concerns around trade war front.
The United States opened a new front in its trade dispute with Europe by imposing tariffs, adding to already-growing market fears about global growth, said a Reuters report. The yellow metal's December futures traded at Rs 38,287 per 10 gram, up by Rs 395 or 1.04 percent on the MCX around 09:20 AM IST.
Rupee's fall against the US dollar also gave a leg up to gold prices. The rupee closed 21 paise lower at 71.08 per dollar on September 1.
Gold and silver prices recovered from their lows and closed positive on September 1 due to the weakness in the dollar index and rupee prices gained in international, as well as domestic, markets. Gold, after making a low of around $1,460 on September 1, again tested $1,500 per troy ounce on that day’s session. The downbeat US PMI and non-farm employment data put pressure on the dollar index.
“Global equity markets crashed again and safe-haven buying was seen in Gold. We expect gold prices to remain firm and expected to test 38,300-38,500. At MCX, 37,800 act as a major support for gold prices,” Manoj Kumar Jain, Director at IndiaNivesh Commodities, told Moneycontrol.
“Silver also gained and test 45000 levels on Tuesday. In the international market, Prices crossed $17 per troy ounce and trading around $17.50. At MCX, 44,500 is likely to act as a major support for silver prices,” he said.The fresh sell-off in global equities amid weak domestic cues is likely to keep gold and silver prices firm in the near term. Jain advises investors to deploy ‘Buy on Dips’ strategy which is likely to work for both precious metals i.e. silver and gold.The Great Diwali Discount!
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