Gold futures advanced about 1% in early electronic trade on Monday, edging closer to record territory, while domestic bullion prices scaled fresh highs as the sharp depreciation of the Indian rupee significantly magnified gains. MCX gold futures for February 2026 delivery rose 1.3% to ₹135358 per 10 grams, tracking the rupee's slide beyond 90.87 against the $, a new record low. The currency has now weakened around 5.5% this year, making it Asia's poorest performer and sharply inflating landed gold costs. On the global front, bullion drew additional support from a broadly softer dollar, with the dollar index slipping below the 99 mark and extending its third consecutive weekly decline. This break from the range-bound trading seen earlier in December reflects growing caution ahead of a heavy slate of delayed US macro releases, including nonfarm payrolls for October and November, November CPI, retail sales, and flash PMIs and remarks from Federal Reserve officials, all of which could shape expectations for the policy outlook into 2026 and reinforce gold's safe-haven appeal.
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