Gold futures rise 0.34% to Rs 1,42,500 per 10 grams on MCX ahead of Diwali buying

For those planning to buy gold at Diwali, it is worth checking the day's rate before heading to the bullion market. On Monday, October 26, gold futures rose. On the Multi Commodity Exchange (MCX), 24-carat gold reached Rs 1,42,500 per 10 grams. Gold prices also rose in the bullion market.

Movements in the international market, changes in the US dollar and expectations on interest rates are affecting the price of gold. It would therefore be prudent to check the latest rate before buying on Tuesday, October 27.

By Monday evening, 24-carat gold futures on the MCX had risen 0.34 per cent. With a gain of Rs 476 per 10 grams, the price stood at Rs 1,42,500. Gold had closed at Rs 1,42,024 per 10 grams on the previous trading day. According to bullion data, the price of 24-carat gold was Rs 1,42,840 per 10 grams. In the international market, gold was recorded at $4,006.60 per ounce. In the Delhi bullion market on Monday, gold rose by Rs 200 to Rs 1,46,300 per 10 grams, inclusive of all taxes.

According to the IBJA, the morning rates were as follows: 24-carat gold at Rs 141710 per 10 grams, 22-carat at Rs 129806 per 10 grams, 18-carat at Rs 106283 per 10 grams and 14-carat at Rs 82900 per 10 grams. Silver was at Rs 194479 per kg.

Among cities, 24-carat gold was at Rs 142750 per 10 grams in Mumbai, Pune, Nashik, Nagpur, Kolhapur, Jalgaon, Sangli and Chhatrapati Sambhajinagar.

Saumil Gandhi, senior analyst in the commodities division at HDFC Securities, said weak signals from global markets affected the domestic gold market. According to him, this put pressure on the price of gold, which slipped to its lowest level since the beginning of July.

According to Pinky Yadav, commodities analyst at Choice Broking, a stronger US dollar, higher bond yields and rising geopolitical tension in West Asia heightened concerns over inflation. In her observation, the price of crude oil had risen to about $115 per barrel.

When crude oil prices rise, there is a risk of greater inflationary pressure. The market then expects central banks to keep interest rates high for a longer period. Gold earns no regular interest, so its appeal as an investment can fall when interest rates are high. As a result, pressure on the gold price can build. In the coming days, the movement of the US dollar, crude oil prices and signals on interest rates worldwide will be important for the gold market.