Gold, Silver Prices In India Rise Despite Weak Global Trend

Reversing the usual trend, gold and silver prices in India gained on Monday, despite weakness in international prices.

On MCX, gold futures were trading Rs 110 higher at Rs 38,420 per 10 grams and silver futures were up by Rs 285 to Rs 46,677 per kg.

In the international markets, spot gold fell 0.2 percent to $1,511.27 an ounce on the back of progress in US-China trade deal and positive economic data.

On Friday, the US and China said that progress has been made in trade talks between the two biggest economies. Further, US job growth slowed less than expected in October as per data from the American Labor Department, while China's Caixin/Markit Manufacturing Purchasing Managers' Index for October rose to 51.7 from 51.4 in the previous month.

There has been an increase in optimism in the global as well as domestic markets as well. Sensex hit its new all-time high at 40,434.83, and the Indian rupee was trading at its five-week high at 70.57 on Monday morning.

While a stronger rupee and pressure on international gold markets should have lowered prices of the precious metals in the country, it appears that gold in India is trading with positive bias. Traders may have been betting on gold to take advantage of the gains in rupee's value.

As for the international markets, gold traders now await the comments from the new head of the European Central Bank (ECB) Christine Lagarde, who will be giving her first speech in the role on Monday.