The slump in new home sales has eased fears that the Fed may start tapering its USD 85 billion monthly bond buying program from next month, boosting the demand outlook for the precious metal, a hedge against the inflationary risk of monetary stimulus.
A rebound in investment demand for the precious metal also bolstered sentiment. Assets in the SPDR Trust, the biggest bullion-backed exchange traded product (ETP) advanced 0.7 per cent to 920.13 metric tons on Friday.
Gold futures for October 2013 contract, at MCX, were trading at Rs. 31,822 per 10 grams, up by 0.21 per cent after opening at Rs. 31,806 against the previous closing price of Rs. 31,756. It touched an intra-day high of Rs 31,862. (At 10:45 AM).
Dion Global Solutions Ltd.