Gold hovers around $1,600; dollar firm

Business

oi-Monika

By Monika Nihalani

Published: Tuesday, December 20, 2011, 14:20 [IST]

Precious metals remained steady on Tuesday with overseas spot gold hovering around $1,600 a troy ounce on the back of mixed investors' sentiments. US dollar stood strong against the basket of currencies with no positive news from euro zone.

International spot gold fell 6.6% last week over the impasse seen on the recovery of euro zone debt crisis. Fitch's warning to downgrade France and other six economies of euro zone was another blow to investors' sentiments.

On domestic front, gold and silver advanced on the Multi Commodity Exchange (MCX) on Tuesday as equities turned sour mirroring a weak global trend.

Gold for February contract delivery opened at Rs 27,685 per 10 grams and was trading in the range of Rs 27,739 – Rs 27,742 per 10 grams at 2:00 pm IST.

Gold for April contract breached the level of Rs 28,000 today.

MCX silver futures edged up by Rs 200 per kg, silver for March delivery was seen trading above Rs 53,000 per kg same time.

Spot bullion also moved up by Rs 70 with 22 carat gold seen up at Rs 25,900 per 10 grams and 24 carat gold at Rs 27,700 per 10 grams.

The partially convertible Indian Rupee depreciated further on Tuesday and breached 53-a mark, making gold more expensive for the physical buyers.

Despite fall in prices last week, buyers refrained from gold purchases in expectations of bigger fall.

GoodReturns.in