Gold Prices Rally For Second Day On Equity Rally Pause; FOMC Outcome Eyed

Gold prices in India gain in line with global cues on June 10, 2020, with prices on the MCX rising 0.12% or Rs. 56 to Rs. 466450 per 10 gm.

In the previous session, gold after earlier bucking the trend in the global markets, rallied as the equity gains were paused on profit booking. Also, weakness in rupee also led to gold to gain in price.

The retailing price of 22-carat gold in Mumbai was Rs 42,909 plus 3 percent GST, while 24-carat 10 gram was Rs 46,844 plus GST.

In the international markets, the precious yellow metal is holding on to gains as the equities rally has seen a halt which increases the appeal of 'safe haven'. Also, investors are keeping an eye over the US Fed meet outcome which gave indications of a dovish policy stance.

Spot gold was up 0.1% at $1,715.94 per ounce by 1257 GMT. US gold futures were flat at $1,721.50.

The US will publish its first economic projection ever since the Coronavirus pandemic struck the globe. There is expected a crash in output as well as near zero interest rates for the next few years.

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