Gold prices today: Metal up 0.6% on MCX, trades at $2,312 an ounce globally; check local rates

Gold prices opened higher at India’s Multi Commodities Exchange (MCX) on Monday, after edging lower globally throughout the past week. The per 10 gram of the yellow metal peaked to ₹71,169 in the first hour of trading, up 0.6% as against the previous day’s close.

At 11 am, gold pared some of the gains at MCX and was trading at ₹71,140 per 10 gram, still higher by 5.6% as against the last closing price.

In the international market, spot gold was trading at $2,312 an ounce, up 0.49% as against the previous closing price.

Also Read: Citi forecasts gold to touch $3,000 an ounce in 6-18 months

Gold, on May 3, had dropped below the $2,300 an ounce-mark – marking its lowest in over a month – as tensions eased in the Middle East and the US Federal Reserve sounded non-committal for further rate cuts.

The slide in global gold prices continued even as the US non-farm jobs data released on May 3 showed a weak growth in employment. Only 175,000 non-farm jobs were added in April, as compared to the estimate of 240,000 jobs. The unemployment rate increased to 3.4%.

A weaker employment scenario pushes the case for rate cuts, which in turn is expected to increase the demand for gold. However, the lacklustre US non-farm jobs data failed to raise the yellow metal’s rates.

What are the retail gold rates in Indian cities?

• As per the retail rates tracked by Upstox, the per 10 gram of 24 karat gold in Mumbai was trading flat at ₹73,042, up 0.5%.
• In New Delhi, the retail prices declined by 0.8% to ₹72,544.
• In Chennai, the rate rose by 0.2% to ₹72,828, whereas, it declined by 1% in Bengaluru to ₹72,686.
• In Kolkata, the price rose by 1.6% to ₹73,540.

In the long-term, say analysts, the gold rally is likely to continue as demand for safe-haven assets could intensify. The metal may touch the $3,000 an ounce price in the international market in the next 6 to 18 months, as per a forecast released by Citi Research in April.