India has always been the world"s largest consumer of gold, mostly Indians buy lot of jewelery during wedding and festival season. We've already entered into wedding season so this is also one of the important reasons for recent rush in metal prices.
On trading side, Gold futures also climbed after the U.S. Federal Reserve launched a second round of government debt purchases, or quantitative easing. President Barack Obama signed a debt-limit compromise, preventing a default.
At the Multi Commodity Exchange (MCX), gold future for August delivery opened at Rs 23,829 per 10 grams. It touched the intra-day high of Rs 23,988 per 10 grams. It was trading in the range of Rs 23,910 – Rs 23,918 per 10 grams at 2:20 pm.
Mounting concern that the global economy is losing its momentum is also boosting the demand for precious metal as a safe haven investment.
Silver futures for September contract, at MCX, opened at Rs 61,501 per kg. It touched the intra-day high of Rs 61,830 per kg. It was trading in the range of Rs 61,521 – Rs 61,528 per kg at 2:20 pm.