Mumbai: Bullion markets have rallied in the last two trading sessions causing gold rates in India to fluctuate upwards by a margin of Rs 1,000.
Although Gold rates slipped by a margin of 4 percent across India in the month of November, the recovery in December is reportedly much faster.
In retail markets, 24K Gold rates recovered to levels of Rs 49,000 on Thursday. Two trading sessions ago, the India average rate hovered around Rs 48,120.
On the MCX, futures contracts made a gain of 1.12 percent to 49,129 -- an intra-day gain of 1.12 percent for Thursday alone. The trading stats showed MCX Gold touch an intra-day high of Rs 49,936 indicating renewed interest.
The interest stems from trading sentiment in the US and other international bullion markets. On the NYCOMEX, Spot Gold touched levels of $1,837.54 per ounce on the back of strong cues from a weak US Dollar. In the trade on Wednesday, the USD slipped against the Euro to settle to a two and half year old low.
Traders strongly anticipate Gold making short-term gains although the long-term predictions are bearish and factored around Covid-vaccines and an easier change in the US administration. Analysts cite the size of the next US fiscal stimulus as a top factor that will drive the US greenback and accordingly gold rates.
The London Bullion Market rates in the last three sessions have gained by $60.05 per ounce. Most of the action was seen on Wednesday and Thursday.
Amid the hazy picture of economic recovery and tight national debts, the next FOMC interest rate announcement is slated on 16 Dec may give better clarity on where Gold rates could head next.