Gold for June contract gained as much as 1.43 per cent to US$1,538.8 per ounce on the Commodity Exchange (COMEX), supported by weakening of the U.S. dollar and accelerating global inflation that prompted investors to buy precious metals as a protection of their wealth.
The U.S. dollar dropped to the lowest since December 2009 against euro after Federal Reserve decided to keep the interest rates unchanged at a range of zero to 0.25 per cent and maintain the stimulus program to support the economy.
Moreover, gold futures also got support after the US Bureau of Economic Analysis reported yesterday that the U.S. economy expanded at 1.8 per cent annual rate in the first quarter of 2011 which is below than market expectation of 2.0 per cent.
Gold for June contract, at MCX, closed at Rs.22,283.00 per 10 grams, up by 0.69 per cent, after opening at Rs. 22,175.00 against the previous closing price of Rs. 22,130.00. It touched the intra-day high of Rs. 22,349.00 with a business volume of 35,506 lots.
At COMEX, gold future for June contract closed on Thursday at US$1,531.2 per ounce, up by $14.10, after opening at US$1,527.8 against the previous closing price of US$1,517.10 per ounce. It touched the intra-day high of US$1,538.8 with a business volume of 170,035 lots.