Gold futures cross Rs 63,500 mark as global benchmark nears two-month peak

Gold price today, gold rate today: Domestic gold futures jumped on Monday as the yellow metal approached a two-month high in the global benchmark on the back of a softer economic reading from the world’s largest economy last week that continued to support bets about a sooner-than-expected reduction in headline interest rates. MCX gold futures rose by as much as Rs 86, or 0.1 per cent, to Rs 63,649 per 10 grams.

However, the contract lost much of its intraday sheen in the last hour of the morning session. At 3:45 pm, it was left with a gain of Rs 25 at Rs 63,588 per 10 grams.

In the international market, spot gold approached a fresh two-month high of $2,088.2 before turning flat near $2,081 per ounce US gold futures were down 0.3 per cent at $2,090 an ounce.

Many analysts say the recent spike in the yellow metal was triggered by possible short-covering. Typically, gold shares an inverse relationship with benchmark interest rates, which is a non-interest-yielding bet.

Meanwhile, the rupee inched higher to 82.87 against the US dollar, amid weakness in the greenback overseas and strong foreign fund inflows on Dalal Street. The dollar index, which measures the American currency against six peers other than the rupee, was down 0.1 per cent at 103.76 at the last count.

Jateen Trivedi, VP Research Analyst, LKP Securities maintained that gold prices exhibited positive momentum despite a lower opening, with demand gradually lifting prices from an initial gap down of -160rs to cover the entire loss by mid-session.

"Comex Gold similarly found support around the 2080$ level, contributing to the positive sentiment in MCX Gold following the gap down opening. Looking ahead, the price outlook remains optimistic, supported by expectations of lower Nonfarm Payroll data compared to the previous month. However, market volatility may increase in response to the Federal Reserve Chairman Powell's testimony scheduled for 6-7 March 2024, which could impact gold prices," the expert added.

(With inputs from agencies)