Gold futures rebound on firm global cues

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Gold futures rose in the domestic market on Friday as investors and speculators booked fresh positions in the precious metal amid a pickup in physical demand for gold in the domestic spot market ahead of the festive season, and a firm trend in overseas market.

Gold futures rose in the overseas market amid strong physical demand as a rebound in China's manufacturing signaled a pickup in the world's second biggest economy, bolstering hopes of a rise in bullion demand. Gold demand in Indonesia is tipped to rise to the highest level in four years at 40 metric tons in 2013, a report said.

Further, doubts remain over when the US Federal Reserve may start tapering stimulus with few members outlining the need for evaluating further economic data before deciding to reduce the central bank's USD 85 billion monthly bond buying program. A rise in jobless claims last week eased concerns that the central bank may start tapering QE next month, supporting the bullion, a hedge against the inflationary risk of monetary stimulus.

Gold futures for October 2013 contract, at MCX, were trading at Rs. 31,400 per 10 grams, up by 0.83 per cent after opening at Rs. 31,288, against the previous closing price of Rs. 31,140. It touched an intra-day high of Rs 31,428. (At 11:19 AM).

Dion Global Solutions Ltd.

Read more about: gold, gold futures
Story first published: Friday, August 23, 2013, 12:31 [IST]
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