MUMBAI: Gold prices rose past a six-month high in the global market on Monday, as a weaker dollar and expectations of a pause in US interest rate hikes increased demand for the yellow metal.
The global prices also impact domestic prices in India due to high imports of the precious metal.
Spot gold increased 0.5 per cent to $2,012.33 per ounce while the US gold futures also rose 0.5 per cent to $2,013.10.
The dollar depreciated further by 0.1 per cent against a basket of major currencies and is currently at a two-month low, which makes the precious metal cheaper in other foreign currencies.
Expectations of low interest rates makes financial instruments less attractive for investors compared to gold, which is considered a safe investment.
In India, the average price of gold was at Rs 62,440 per 10 gm, up by over Rs 300 compared to the previous day although it varied among cities.
The demand for gold in the domestic market remains firm amid the marriage season, as the precious metal is gifted to brides and grooms in large quantities.
The price in Mumbai and Delhi per 10 gm of 24-carat gold was Rs 62,290, while in Chennai it was Rs 62,780.
In Bengaluru and Ahmedabad, the price was Rs 62,290 and Rs 62,340, respectively.