Gold futures on the Multi Commodity Exchange hit an all-time high of Rs 57,099 per 10 grams on 24 January. Gold prices jumped tracking gains in overseas markets and a depreciation in the rupee currency. However, the surge dampened demand in the world’s second biggest consumer of the precious metal.
Gold prices have inverse correlation with the dollar index. The index has fallen nearly 15% in the past three months, which has pushed up the prices of gold. A rise in index value denotes that the dollar is gaining against its counterparts and a fall in index value denotes a depreciation in the dollar’s value.