Gold Prices Gain Slightly On Positive Global Cues

Gold prices across Indian cities rose slightly on Monday after a long streak of decline in the past week. Rates for 10 grams of 22 carats was up by Rs 40 in Mumbai to Rs 30,700 and rose by Rs 50 in Delhi to Rs 30,500. In Chennai and Kolkata, it was priced at Rs 29,910 and Rs 31,000 respectively.

Gold futures were also trading higher by 0.36 percent at Rs 31,408 per 10 grams as traders raised bets amid positive cues from global markets. The precious metal to be delivered by next year was trading higher by Rs 113, or 0.36 percent at Rs 31,408 per 10 grams in a business turnover of 24 lots at the MCE. Similarly, the metal for December delivery gained Rs 106, or 0.34 percent to Rs 31,122 per 10 grams in 268 lots. Analysts attributed the rise to the widening of positions by participants in line with a firming trend overseas.

Meanwhile, gold was trading 0.15 percent higher at $1,211.30 an ounce in Singapore, US gold futures were up 0.3 percent at $1,211.70 per ounce and spot gold remained steady at $1,209.57/ounce.

Last week, owing to lower domestic demand, despite the festivities, rates in Indian cities kept falling throughout the week. As for the international market, after the Federal Reserve signaled to keep tightening its borrowing costs, the US dollar firmed, making gold a less attractive bet for traders.