Domestic gold futures rose on Thursday, tracking a firm trend in the international market and supported by strong spot demand. On the Multi Commodity Exchange (MCX), gold contracts for June delivery were trading higher by 0.34 percent at Rs 50,555 per 10 grams, after hitting an intraday high of Rs 50,615.
Factors Driving Gold Prices
The uptick in gold prices was largely attributed to a weaker US dollar, which makes the precious metal cheaper for holders of other currencies. Additionally, sustained buying by jewellers and retailers at the domestic spot market added to the positive momentum.
International Market Influence
Globally, gold prices edged up as the dollar index declined. Spot gold was up 0.2 percent at $1,775.76 per ounce, while US gold futures gained 0.3 percent to $1,776.70. Analysts noted that uncertainty over the global economic recovery continued to support safe-haven demand.
Outlook
Market participants are now awaiting cues from the US Federal Reserve's policy meeting next week. Any dovish stance could further boost gold prices. In India, the upcoming wedding season is expected to keep demand robust, providing additional support to domestic rates.
