Gold futures surge on physical demand

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Gold futures surge on physical demand
Gold futures surged in the domestic market on Friday tracking firm global cues amid strong physical demand for the precious metal.

Assets in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product are headed for the first weekly increase this year while gold demand in China surged by 54 per cent in the first half of 2013.

Further, gold imports in India surged to 338 metric tons in the April-June 2013 quarter from 153 tonnes in the year ago period. Total gold demand in India rose 71 per cent to 310 tons in Q2 2013, the World Gold Council said.

Further, Federal Reserve Bank of St. Louis President James Bullard said that below-target inflation may warrant policy accommodation, bolstering the appeal of the precious metal, a hedge against the inflationary risk of monetary stimulus.

Gold futures for October 2013 contract, at MCX, were trading at Rs. 30,205 per 10 grams, up by 3.49 per cent after opening at Rs. 29,290, against the previous closing price of Rs 29,186. It touched an intra-day high of Rs 30,470. (At 11:35 AM).

Dion Global Solutions Ltd.

Read more about: gold futures
Story first published: Friday, August 16, 2013, 12:20 [IST]
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