Indian gold futures reached a record high on Friday in line with advances in the international market, but the price increase slowed demand in the country, Reuters reported.
The price of local gold futures increased to ₹56,245 ($691.45) per 10 grams, breaking the previous high set in August 2020 of ₹56,191.
The price of gold contracts for February delivery on the Multi Commodity Exchange increased by ₹228 or 0.41 percent to ₹56,103 per 10 grams as speculators opened new positions in response to strong spot demand.
On global level, gold was priced at USD 1,906.80 per ounce, up to 0.42 per cent.
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A weaker dollar and predictions of slower U.S. Federal Reserve interest rate increases have kept gold prices rising since November. Data released on Thursday revealed that US consumer prices dropped in December for the first time in more than two years. It raises hope that inflation may moderate in upcoming days.
Before slowing to a 50 bps hike in December, the Fed had increased rates by 75 basis points (bps) four times during the previous year.