Mumbai: India’s gold futures were higher on Monday on the Multi Commodity Exchange of India Ltd (MCX) as geopolitical tensions in the Middle East fuelled crude oil’s rise and analysts said it indicated a higher trend for the day.
“Precious metals are looking up owing to a weaker dollar and a rebound in crude oil,” said an analyst at Motilal Oswal Commodities Broker Pvt Ltd.
Overseas gold prices that guide the local market, regained some strength as oil rose after talks between Iran and world powers over Tehran’s nuclear programme ended in stalemate. A drifting dollar weighed down by worries about the health of the US economy, added to gold’s rise.
Gold generally has an inverse relation with the dollar as two compete for funds. But the metal follows crude oil as the latter signals inflation while the metal negates it.
“The benchmark August gold is seen trading within Rs13,100 and Rs13,380 per 10 grams,” said the analyst from Motilal Oswal.
Open interest for August gold was at 8,538 lots, down from 9,568 the previous day. Volume on Saturday was at 357 grams.