Gold prices in India surged today after a two-day fall, tracking a similar global trend. On MCX, gold futures prices surged 0.92% to 38,472 per 10 gram as trading opened at 5 pm today. Commodity exchange MCX was closed during the morning session due to a public holiday. In previous two days, gold prices had fallen by nearly 400 per 10 gram. Silver futures on MCX rose 0.83% to 45,599 per kg.

Gold traders will also focus on top-level US-China trade talks, scheduled to start later this week. In global markets, gold prices moved higher after touching a near one-week low, as the dollar eased. Spot gold rose 0.5% to $1,500.35 per ounce. Gold also drew support from the dollar, with the dollar index shedding overnight gains against rivals. Silver gained 0.4% to $17.51 an ounce.

Reflecting strong investment demand for gold, holdings of the world's largest gold-backed ETF, SPDR Gold Shares, held close to their highest in nearly three years at about 923.76 tonnes.

Analysts expect gold to remain in a trading range in the near term. The minutes of US Federal Reserve's September meeting is also due later this week. Gold traders will look for clues whether the Fed will cut rates at its next meeting. Lower interest rates tend to increase investor interest in non-yielding gold.

Back in India, a weaker rupee may cap the downside for gold. The rupee on Monday closed at 71.02 a US dollar as compared to previous close of 70.89.

The correction in gold prices has lifted hopes of a pick up in domestic retail buying. Meanwhile, the government has opened sovereign gold bonds for subscription to tap the festive investment demand for gold.

The 2019-20 - Series V of gold bonds opened for subscription on Monday and it will close on 11 October. The issuance date of the bonds will be 15 October.

The government is issuing gold bonds at 3,788 per gram. Those applying online will get a discount of 50 per gram. The minimum investment in the bonds, which have a maturity period of eight years, is one gram. (With Agency Inputs)

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