Gold prices rise for the fifth day on G8 commitment, weak dollar

Posted by: Religare
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Gold prices rise for 5th day on G8 commitment, weak dollar
Gold prices continued its northward journey, rising for the fifth day on Tuesday as a result of buying activity as the investors were still quite optimistic on reports that the global leaders remained committed to keep Greece in the eurozone. Gold futures for June 2012 contract, at MCX, were trading at Rs. 29,053 per 10 grams, up by 0.06 per cent after opening at Rs. 29,068 against the previous closing price of Rs. 29,035. It touched the intra-day high of Rs. 29,095 till the trading. (At 11.08 AM today).

Moreover, reports that Japan is expected to take up fresh measures with an aim to weaken the yen in order to boost exports also boosted the gold prices.

Sentiment improved further as the dollar weakened against a basket of other currencies which sent the prices of the yellow metal rising as a weaker dollar boosted the demand for the precious metal as an alternative asset by making the bullion cheaper for those holding other currencies. The dollar index for June 2012 future was down 0.03% to trade at 81.06 on the Inter-Continental Exchange (ICE) US dollar future index at 11.21 AM IST today.

At the Commodity Exchange (COMEX), gold future for June 2012 delivery traded at US$1,589.4 per ounce, up by 0.04 per cent. It opened at US$1,593 against the previous closing price of US$1,588.7. It touched the intra-day high of US$1,594.4. (At 11.19 am IST).

Dion Global Solutions Ltd

Read more about: gold
Story first published: Tuesday, May 22, 2012, 13:30 [IST]
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