In the last week, gold prices gained Rs 2,200 per 10 grams, while silver gained Rs 6,400 per kilogram.
In international markets, gold prices are inching towards their record highs on Monday, supported by a weaker dollar and the prospect of a more aggressive rate cut by the US Federal Reserve at its next policy meeting.
At 0020 GMT, spot gold was up 0.2% at $2,580.81 an ounce. Bullion hit an all-time high of $2,585.99 on Friday, while U.S. gold futures were down 0.1% at $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 further reductions at its policy meeting. Markets currently price in a 52% chance of a 50 basis point easing by the end of a two-day meeting on Wednesday, up from 43% on Friday, while there is a 48% chance of a 25 basis point cut, according to a Reuters report.
Today, the US dollar index, DXY, hovered around the 100.94 mark, falling 0.18 or 0.17%. Data on Friday showed that US consumer confidence rose to 69.0 in September from 67.9 in August, reflecting an improvement in sentiment amid declining inflation, although caution remains ahead of the November elections. Gold market bulls are ensuring that bullion prices rise to record highs, with a milestone of $3,000 per ounce in focus, driven by monetary easing by major central banks and a tight US presidential election race.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of The Economic Times)
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