Gold prices rise on prospects of monetary easing, downbeat U.S data

Gold prices rise on prospects of monetary easing
Gold prices rose on Friday as the weaker-than-expected first-quarter growth data from China fuelled the prospects for further monetary easing.

Gold futures for June 2012 contract, at MCX, were trading at Rs. 28,764 per 10 grams, up by 0.8 per cent after opening at Rs. 28,742 against the previous closing price of Rs. 28,742. At 3.10 pm IST

The world's second-largest economy experienced a fifth consecutive quarter of slowing growth in the first three months of 2012, with the gross domestic product (GDP) reading at a lower-than-expected 8.1 percent.

Sentiment improved further due to downbeat U.S data where the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 380K, from 367K in the preceding week.

Yesterday, prices fell as a result of profit-taking by the traders in spite of a declining dollar, as they ignored the Federal Reserve Beige Book's report that the economy grew moderately in March.

Read more about: gold, futures, mcx
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