Gold Prices In India Stable As Rupee Strengthens

On Thursday, gold prices in India remained subdued despite international rates hit one-week high. On MCX, gold futures (October 2020) was trading 0.07 percent higher at Rs 51,440 per 10 grams.

In the global scene, spot gold was flat at $1,946.25 per ounce after hitting its highest since 3 September at $1,950.51 on the previous day.

Ahead of the monetary policy decision of the European Central Bank, the US dollar eased against its global peers. The American currency's weakness helped the Indian rupee open 12 paise higher at 73.43 per dollar and touched a high of 73.15 during the day.

The domestic currency ended with gains on Thursday, its second straight day of gains.

While in the international market the dollar's loss is the yellow metal's gain, in India, since most of the gold utilised is imported, the greenback's weakness makes the metal cheaper for Indian buyers who buy in rupees.