Gold prices were trading higher in morning trade on Thursday, December 28, as the dollar dropped to a four-week low. MCX Gold futures were up 98 points, or 0.34 per cent, at Rs 29,040 per 10 gram at around 11 am (IST).
Similarly, silver was also trading in the green. MCX Silver futures were up 0.30 per cent, or Rs 117, at Rs 38,790 per 1 kg at around the same time.
Angel Commodities said, “We expect gold prices to trade higher on Thursday continuing its positive momentum in line with weakness in the Dollar index.”
The dollar was on the defensive on Thursday, facing headwinds from a dip in U.S. 10-year bond yields, while commodity-linked currencies were bolstered by this week’s rally in metal and oil prices.
Meanwhile, domestic equity markets were trading flat ahead of the expiry of December derivatives contracts.
The Nifty reclaimed the 10,500-mark and BSE barometer Sensex was up 17 points at 33,929 in morning deals.
The local currency rupee was trading nearly 3 paise down at 64.18 against dollar on account of month-end demand for the US currency by banks and importers.
