Gold rebounds on MCX to Rs 1,43,721 per 10 grams as rupee slips to 95.22 against dollar

Gold prices have been swinging for the past several days. Rates fell in early trade on Tuesday, but gold rallied again overnight. Buyers are now watching whether the metal rises or falls when the market opens today.

On the Multi Commodity Exchange (MCX), the futures price of 24-carat gold rose 0.45 per cent, gaining Rs 648 to reach Rs 1,43,721 per 10 grams. It had earlier closed at Rs 1,43,073 per 10 grams.

Bullion market data put 24-carat gold at Rs 1,44,100 per 10 grams. In the international market, gold was at $4,060.10 an ounce. In the sarafa market, gold fell Rs 500 and closed at Rs 1,45,800 per 10 grams, inclusive of all taxes and making charges. The rate for 24-carat gold is Rs 1,43,440, for 22-carat Rs 1,31,500 and for 18-carat Rs 1,07,620 per 10 grams.

According to the IBJA, the morning rates per 10 grams are: 24-carat gold Rs 141431, 22-carat Rs 129551, 18-carat Rs 106073 and 14-carat Rs 82737. Silver is at Rs 192499 per kg.

Today's rate for 24-carat gold is Rs 143290 per 10 grams in Mumbai, Pune, Nashik, Nagpur, Kolhapur, Jalgaon, Sangli and Chhatrapati Sambhajinagar alike.

Saumil Gandhi, senior analyst at HDFC Securities, said gold found support in the domestic market. He said a modest recovery in global markets, softer demand for crude oil, a steady US dollar and a fall in benchmark bond yields lent strength to the rally in the bullion market.

According to Praveen Singh, head of the commodities division at Mirae Asset Sharekhan, Gulf countries are trying to restart diplomatic talks between the US and Iran. On the other hand, the US is weighing fresh military options against Iran. Amid this geopolitical situation, spot gold rose slightly.

Jatin Trivedi, vice-president and research analyst at LKP Securities, said the market's entire focus this week will be on the US Federal Reserve's policy decision. Given rising inflation and upcoming events in the US, investors are closely assessing the interest rate outlook.

Meanwhile, the Indian rupee weakened against the dollar for a third straight session. In the previous session it fell 29 paise to close at 95.22 per dollar. This has made gold, which is imported with payment in dollars, costlier still, and that is a major reason for the strong support to prices in the domestic market.