Gold edges up on weak dollar and physical demand

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Gold edges up on weak dollar and physical demand
Gold edged higher on Monday reflecting overseas trend, gold on Multi Commodity Exchange, with the October 2012 contract at Rs 29,961 per 10 grams, higher by 0.19%.

The contract opened at Rs 29,918 against the previous closing price of Rs 29,959. It touched the intra-day high of Rs. 29,997.

International gold was seen trading at $1,606 an ounce. Gold extended gains from previous session after better than expected US employment data which weighed on dollar, in turn sending gold prices higher.

Though the jobs data in the US was surprisingly positive, the unemployment rose to 8.3%, which has lifted prospects of a quantitative easing or QE3 in the US in September by the Federal Reserve.

Gold futures contract for December delivery contract was trading at Rs 30,907 per 10 grams higher by 0.20% at 2.20 pm IST.

Spot gold was seen trading higher at Rs 29,739 per 10 grams. Delhi bullion of 99.9 and 99.5% purity was at Rs 30,200 and Rs 30,000 per 10 grams, respectively.

Gold prices also rose as a result of increased buying by stockists and jewelers in order to meet the ongoing festival season demand.

Read more about: gold, mcx, futures
Story first published: Monday, August 6, 2012, 14:31 [IST]
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