In line with the international trend, gold prices in India too are trading with gains. Gold has been highly volatile of late and after recovery previous losses is gaining ahead of the US jobs data due to be revealed today. On the development, dollar index, an index which measures the performance of greenback against a basket of currencies, has been trading at a 2-week low.
Gold prices in the futures market on the MCX traded higher by 0.3% or Rs. 150 at around Rs. 47305 per 10 gm. In the international markets too, gold futures traded higher by 0.34% at $1818 per ounce.
"Jobs data will be the next highlight given the focus on the Fed's taper. A strong reading will boost expectations the Fed will give markets prior notice in September before a formal decision in November," said Yukio Ishizuki, senior strategist at Daiwa Securities.
Any decision on the rate hike is highly unlikely and as is seen the US tapering and the interest rate hike will not go hand in hand. So, the fall in dollar index has provided some strength to the precious yellow metal. Spot gold too inched higher by 0.28% to $1815.20 per ounce at 3:57 NY time.
Outlook for gold ahead in the near term
"Gold and silver are showing strength in daily chart and Momentum indicator RSI also giving positive signal, so any dips is a opportunity to create fresh long positions in bullions. Fundamentals also supporting prices, So traders are advised to create fresh buy positions in Gold and Silver near given support levels, traders should also focus important technical levels given below for the day", said an analyst at Ganganagar Commodities.
"The outlook is positive on the back of dollar and yield weakening while we recommend investors to buy gold and add more on every dip", adds another analyst at TRADEIT Investment Advisor