Federal Reserve Chairman Ben Bernanke said in a speech the US economy is not that crumbled enough to need immediate stimulus. He further said that our economy is headed for long-term economic growth.
He left open the possibility of more action if another recession seems likely.
Gold picked up on Friday as traders re-invested in the metal again. Festival and wedding season in India is also another very reason encouraging gold traders and investors to put money back in yellow metal.
High prices cut demand, but yet this doesn't seem to be working in gold market.
Demand for gold in India always goes up during August-November period.
Many analysts are anticipating that prices might touch Rs 30,000 level per 10 grams with the start of October.
But global economic situations cannot be ruled out at the same time. Any signs of recovery in Europe and US could trigger investors to exit from the gold rally.
The most traded commodity gold for October delivery on MCX opened at Rs 27,068 per 10 grams was trading between Rs 27,687 – Rs 27,689 per 10 grams around 12:55 pm IST.
Gold for delivery in far-month April which opened at Rs 28,325 per 10 grams. It was trading in the range of Rs 28,456 – Rs 28,495 per 10 grams same time.