Gold reverses its losses; gains on weak dollar, US bond buying hopes
Reversing its previous day's losses, gold prices rose on Wednesday at the domestic markets as investors' expectations of the U.S. bond-buying program staying for some more time overshadowed their fears of slowing bullion demand in India, the world's top consumer. Gold futures for June 2013 contract, at MCX, were trading at Rs. 27,090 per 10 grams, up by 0.31 per cent after opening at Rs. 27,080 against the previous closing price of Rs. 27,007. It touched the intra-day high of Rs. 27,180 till the trading. (At 11.33 AM today).
Sentiment improved further as weaker greenback makes the gold cheaper for those holding other currencies, thus increasing demand. The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.10 per cent lower at 82.653 on the Inter-Continental Exchange (ICE) at 11.20 am IST.
At the Commodity Exchange (COMEX), gold future for August 2013 delivery traded at US$1,406.6 per ounce, up by 0.67 per cent. It opened at US$1,398.8 against the previous closing price of US$1,397.2. It touched the intra-day high of US$1,407.9. (At 11.19 am IST).