Gold October futures contracts at MCX opened on Monday at Rs 73,645 per 10 gram, which is up by 0.18% or Rs 130 while silver December futures contracts were trading nearly 1% highest at Rs 90,008/kg, up Rs 828.
In the last one week, the prices of gold have gained Rs 2,200/10 gm while silver has gained Rs 6,400 per kilogram.
In the international markets, gold prices inch to their record highs on Monday, supported by a weaker dollar and on the prospect of a more aggressive rate reduction by the U.S. Federal Reserve at its upcoming policy meeting.
Spot gold was up 0.2% at $2,580.81 per ounce, as of 0020 GMT. Bullion rose to a record high of $2,585.99 on Friday, while the U.S. gold futures edged 0.1% lower to $2,608.60.
All eyes will be on the Federal Reserve this week as speculation mounts over the extent of interest rate cuts and the pace of future reductions at its monetary policy meeting. Markets are currently pricing in a 52% probability of a 50-bp easing at the conclusion of a two-day meeting on Wednesday, up from 43% on Friday, while there is a 48% chance of a 25-bps cut, according to a report by Reuters.
Today, the US Dollar Index, DXY, was hovering near the 100.94 mark, falling 0.18 or 0.17%.Data on Friday showed that U.S. consumer sentiment rose to 69.0 in September from 67.9 in August, reflecting improved sentiment amid easing inflation, though caution remains ahead of the November election.Gold market bulls are locking in bullion prices surging to record highs, with a milestone of $3,000 per ounce coming into focus, fired up by monetary easing by major central banks and a tight U.S. presidential election race.
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