Dhanteras is considered as the auspicious festival for buying gold. From last year’s Dhanteras to this year’s Dhanteras, gold prices are up about 20%, making investors happy. On MCX, prices of gold futures contracts cooled slightly to Rs 38,334 per 10 gram, down Rs 18. In the previous session, gold prices had surged 0.91 per cent or nearly Rs 350 per 10 gram. Gold prices have edged higher just ahead of Dhanteras, tracking a similar move in global markets. Silver prices on MCX rose 0.30 per cent to Rs 46,127 per kg, adding to Thursday’s 1.5 per cent gain.
In global markets, gold prices today rose two-week high on expectations of another rate cut by the US Federal Reserve later this month. It rose to $1,504.35, highest since October 10. New orders for US-made capital goods fell more than expected in September and shipments also declined, in a sign that business investment remains soft.
The US central bank has cut interest rates twice this year and analysts see another cut when policymakers meet next week. Brexit uncertainty continued after British Prime Minister Boris Johnson proposed a general election to resolve the long-running saga.
Lower interest rates increase the appeal of non-yielding gold, which is often seen as a safer investment during times of political and financial uncertainty.
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