Gold glitters, as dollar weakens

Business

oi-Sneha

By Sneha B K

Published: Tuesday, March 27, 2012, 15:11 [IST]

Gold on the Multi commodity Exchange rose as a weak dollar saw renewed buying. Historically, gold and dollar share an inverse relationship with each other and the sudden dip in dollar has supported gold.

Gold for April delivery on the Multi Commodity Exchange (MCX) at 2.40 pm IST, was trading at Rs 28,389.00 per 10 grams, up Rs 22. It touched an intraday high of Rs 28,425.00 per 10 grams.

Gold is expected to rise, as the dollar loses strength against a basket of currencies. Also, US housing data released yesterday and comments by US Federal Reserve Chairman Ben Bernanke suggested that there may be further quantitative easing, which should continue fresh money pouring into gold.

Silver for latest delivery rose by Rs 215 at Rs 57,945 per kg.

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