The US dollar traded firm at 91.08, up 0.22 percent against a basket of six currencies, recovering 1.2 percent from last week low of 89.99.
Gold holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund (ETF) decreased by 6.7 tonnes to 1,093.54 tonnes, on continued ETF outflow.
Spot gold soared by $11.51 to $1,745.91 an ounce at 1211 GMT in London trading.
MCX Bulldesk jumped 94 points, or 0.65 percent, to 14,664 at 17:44. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Navneet Damani, Vice-President, Motilal Oswal, said, “Gold prices rose more than 1 percent, recovering from a more than eight-month low touched in the previous session, as the dollar weakened and the US House of Representatives passed a massive $1.9 trillion stimulus package. Market participants will keep an eye on the manufacturing and services PMI data expected from major economies, and US jobs data scheduled later this week, which could trigger further volatility.”
“COMEX gold trades about 1 percent higher near $1746/oz amid progress on US stimulus front and correction in US dollar and bond yields. However, weighing on price is continuing ETF outflows. Gold plunged sharply and we are now seeing some relief rally, however sharp gains are unlikely until US bond yields correct sharply or US stimulus is approved,” said Ravindra Rao, VP-Head Commodity Research at Kotak Securities.
The gold/silver ratio currently stands at 67.15 to 1, which means the number of silver ounces required to buy one ounce of gold.
Silver prices declined by Rs 155 to Rs 68,466 per kg from its closing on February 26.
In the futures market, the gold rate touched an intraday high of Rs 46,139 and an intraday low of Rs 45,811 on the Multi-Commodity Exchange (MCX). For the April series, the yellow metal touched a low of Rs 45,611 and a high of Rs 51,931.
Gold futures for April delivery edged higher by Rs 172, or 0.38 percent, at Rs 45,908 per 10 gram in evening trade on a business turnover of 13,610 lots. The same for June gained Rs 132, or 0.29 percent, at Rs 46,001 on a business turnover of 3,074 lots.
The value of the April and June’s contracts traded so far is Rs 2,613.85 crore and Rs 67.31 crore, respectively.
Similarly, Gold Mini contract for April jumped Rs 160, or 0.35 percent, at Rs 45,941 on a business turnover of 24,126 lots.