Gold reverses previous day's losses, gains on weak US data

Gold reverses previous day's losses, gains on weak US data
Reversing its previous day's losses, gold prices rose on Friday at the domestic markets after weak data out of US raised hopes of some stimulus measures from the world's largest economy. U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 15 rose by 17,000 to a seasonally adjusted 361,000 signaling a weak labor market in US. Gold futures for February 2013 contract, at MCX, were trading at Rs. 30,583 per 10 grams, up by 0.33 per cent after opening at Rs. 30,599 against the previous closing price of Rs. 30,482. It touched the intra-day high of Rs. 30,655 till the trading. (At 11.29 AM today).

Sentiment improved further as the Bank of Japan had bolstered monetary stimulus to help revive the world's third largest economy, lifting the demand outlook for the precious metal, which is a hedge against the inflationary risk of monetary stimulus.

At the Commodity Exchange (COMEX), gold future for February 2013 delivery traded at US$1,642.7 per ounce, down by 3.2 per cent as dollar strengthened against other currencies. It opened at US$1,648.5 against the previous closing price of US$1,645.9. It touched the intra-day low of US$1,636.3. (At 11.30 am IST).

Read more about: gold
Story first published: Friday, December 21, 2012, 14:30 [IST]
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