Mumbai, Oct 23: Gold prices rose on the Multi Commodity Exchange (MCX) on Thursday morning amid reports that India and the United States may soon sign a trade deal. The optimism over the potential agreement lifted investor sentiment in precious metals.

In early trade, MCX Gold December futures were trading 0.89% higher at Rs 1,22,938 per 10 grams. Similarly, MCX Silver December contracts gained 0.93% to trade at Rs 1,46,915 per kilogram.

Analysts said MCX gold prices for the December expiry are expected to move in a range of Rs 1,21,500 to Rs 1,23,000 per 10 grams. However, in the global market, gold prices edged lower due to a stronger US dollar as investors awaited key inflation data from the United States later this week, which is likely to influence the Federal Reserve’s next move on interest rates.

As of 3:10 a.m. GMT, spot gold was down 0.2% at $4,084.29 per ounce, while U.S. gold futures for December delivery rose 0.9% to $4,100.90 per ounce. The US dollar index gained 0.2% against major currencies, making gold more expensive for foreign buyers.

Analysts noted that gold, after a significant rise, continues to be volatile but remains in the spotlight. They added that gold’s 54% rise YTD is on track for its biggest yearly rise since 1979, breaking key psychological resistance levels at $3,000 per troy ounce in March and $4,000 in October.

Meanwhile, the Indian rupee opened stronger after the Diwali break, supported by optimism surrounding the trade deal talks with the US. The rupee opened at 87.83 against the dollar, up 10 paise from its previous close of 87.93. Currency and bond markets had remained closed on October 21 and 22 due to Diwali holidays.