Gold rates highest since August as dollar slides and OPEC cuts oil output

Gold rates on Thursday were the highest since August 16 as Indian equity benchmarks surged amid subdued dollar and Treasury yields.

On MCX, gold prices were up 0.51 percent, touching Rs 51,910 per 10 grams around 10:20 am on Thursday. It had opened at Rs 51,875, up from the last close at Rs 51,646. Meanwhile, silver prices also shot up nearly 1.5 percent to Rs 61,627 per kg.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said, "...gold has support at Rs 51,420-51,240, while resistance is at Rs 51,880-Rs 51,880. Silver has support at Rs 60,150-Rs 59,440, while resistance is at Rs61,480–Rs 62,110."

Globally, gold prices edged higher, although prices were confined to a narrow range. Spot gold was up 0.4 percent at $1,722.09 per ounce in the initial trade.

The metal prices rose following a sliding dollar index and the Organization of the Petroleum Exporting Countries' (OPEC) move slash to crude oil output. At the writing of the report, the US Dollar Index Futures were down 0.19 percent at 110.790. The rupee remained unchanged near to 81.5 vs dollar on Thursday.

Meanwhile, crude oil prices surged after OPEC slashed crude oil output by 2 million barrel per day. Brent crude futures rose 0.6 percent to almost $94 a barrel and West Texas Intermediate futures surged 0.7 percent to almost $88.4 a barrel.

Indian equity benchmarks BSE Sensex and NSE Nifty50 also rose on Thursday amid mixed moves across global markets.