Gold Price Recover On Softer Dollar; Outlook Bullish

Gold prices in the international market on Monday saw a rebound from 8-month low on softness in the dollar. Spot gold rose 0.3% to $1,739.31 per ounce by 0108 GMT, after hitting its lowest since June at $1,716.85 on Friday. U.S. gold futures gained 0.4% to $1,736.10.

Early Saturday, the U.S. House of Representatives passed a $1.9 trillion coronavirus relief package.

After touching a record high of Rs. 56200 last year, gold prices are now trading at around Rs. 46000 and in the month of February saw worst loss since November 2016.

Back home in India, on the MCX as prices have receded lower to eight month low, there has been seen a demand boost both from jewellers as well as retail investors.

Sugandha Sachdeva, VP-Metals, Energy & Currency Research at Religare Broking says gold is likely to retain its charm from a medium to long-term perspective and its bullish story is still intact.