Gold future surge on firm global cues

Gold futures rose in the domestic market on Monday as investors and speculators created fresh positions in the precious metal amid a firm trend in the overseas market.

Gold futures rose in the overseas market as investors bet that a pickup in the economy of China, the world's second bullion consuming nation, may bolster the demand for the precious metal. China's industrial production rose 9.7 per cent in July 2013 from the same month a year ago, up from the annual 8.9 per cent gain in June 2013, official data showed.

A rise in holdings in bullion-backed exchange traded products (ETP) also signaled a pickup in investment demand for the yellow metal. Holdings in the SPDR Gold Trust Fund, the largest gold-backed ETP rose 1.8 metric tons to 911.13 metric tons on Friday.

Gold futures for October 2013 contract, at MCX, were trading at Rs. 28,352 per 10 grams, up by 1.60 per cent after opening at Rs. 28,029 against the previous closing price of Rs. 27,906. It touched an intra-day high of Rs 28,404. (At 11:22 AM).

Dion Global Solutions Ltd.

Read more about: gold, gold future
Story first published: Monday, August 12, 2013, 12:40 [IST]
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