Gold price today: Yellow metal jumps on fall in equities, rupee's weakness

Gold prices rebounded in futures trade on October 1 as strong selloff in equities made investors rush to safe-haven assets.

The yellow metal's December futures traded at Rs 37,894 per 10 gram, up by Rs 571 or 1.53 percent on the MCX around 2015 hours 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.

The Sensex closed 362 points, or 0.94 percent, down at 38,305.41, while the Nifty pack fell 115 points, or 1 percent, to 11,359.90. As many as 39 stocks ended in the red in the 50-share index.

Track live gold price here

In the previous session, gold prices slipped to a seven-week low and broke the crucial support of $1,492 and made a low of $1,472 at Comex division. At MCX, after breaching a support of Rs 37,800 per 10 gram, the metal crashed and tested a low of Rs 37,280.

Gold and Silver prices crashed in the previous session as the dollar index, the basket of six major currencies, reached a fresh high of the year. Dollar index crossed 99 for the first time this year and triggered the sell button for both precious metals.

Silver prices also rebounded after testing five-week low at Rs 43,975 per kg.

Silver December futures traded at Rs 44,955 per kg on the MCX, up by Rs 836 or 1.89 percent at 2015 hours IST.

"Gold could test support of $1,464/Rs 37,000 while silver prices could test support of $16.80-16.55/Rs 43,500-43,200 levels. $1,484 act as major resistance for gold while $17.40 an ounce act as major resistance for silver prices. At MCX, Rs 37,500 act as major resistance for gold and Rs 44,500 act as major resistance for silver," Manoj Kumar Jain, Director at IndiaNivesh Commodities said.