Gold rises for third day on Middle East unrest, talk of Japanese monetary easing

Gold rises for third day on Middle East unrest
Gold prices rose for the third day on Wednesday at the domestic markets as a result of expectations that the rising turmoil in the Middle East will soon end in a ceasefire which in turn is buoying safe-haven demand in gold.

Israeli security forces and Hamas militants continued to engage in military campaigns in the Gaza Strip. Gold futures for December 2012 contract, at MCX, were trading at Rs. 31,751 per 10 grams, up by 0.03 per cent after opening at Rs. 31,755 against the previous closing price of Rs. 31,744. 

Sentiment improved further on hopes that the Japanese opposition leader Shinzo Abe may become the country's next prime minister during December 16, 2012 elections and introduce loose monetary policies with an aim to jolt the Japanese economy.

However, gains in the yellow metal were curbed after official data indicated the number of housing starts in the U.S. increased to the highest level since July 2008 in October which indicated an improving US economy and lessened the chances for further stimulus measures from the Federal Reserve.

Read more about: gold
Story first published: Wednesday, November 21, 2012, 13:30 [IST]
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