Gold bubble enlarges: Gold futures climbs Rs 28,000, rupee down

Business

oi-Monika Nihalani

By Monika Nihalani

Published: Monday, August 22, 2011, 14:47 [IST]

Continuing with the bull rally, India's gold futures gained Monday morning, by touching a fresh peak of Rs 28,244 per 10 grams following global cues and weak rupee.

The most traded commodity gold for October delivery on MCX opened at Rs 27,931 per 10 grams and it touched a new high of Rs 28,244 per 10 grams. It was trading between Rs 28,187 – Rs 28,201 per 10 grams around 12:55 pm IST.

Gold for delivery in far-month April opened high at Rs 28,707 per 10 grams and was trading in the range of Rs 28,997 – Rs 29,007 per 10 grams same time.

Gold for immediate delivery was seen at Rs 27,877 per 10 grams.

Weak rupee is also boosting demand for gold. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

The partially convertible Indian Rupee slipped to Rs 46.10 against US dollar in the early trade, the highest fall after a gap of three months due to import payments.

Global investors have been diversifying their money from equities to gold on its safe demand, which is also supporting the price of gold to move in upward direction.

Analysts say, recent rise in gold prices is wholly due to increasing speculative activities by the commodity participants as fears among the investors about the US hitting into another recession and euro zone debt crisis is getting aggravating day by day.

GoodReturns.in