Gold futures closed higher in the domestic market on Thursday as the dollar weakened against major rivals. Although gold may witness further losses in the short term amid U.S. interest rate hike expectations, the yellow metal still remains bullish.
Because most commodities are priced in dollars, weakness in the currency can provide support for assets like gold, boosting their appeal among buyers using stronger currencies. Weakness in the U.S. stock market can also lure investors back to the precious metal.
At the MCX, gold futures for February 2018 contract ended at Rs 29356 per 10 grams, up by 0.11 per cent, after opening at Rs 29,309 against a previous close of Rs 29,324. It touched the intra-day high of Rs 29,406.