Gold on MCX surges on strength in international prices

Published: Thursday, January 2, 2014, 12:09 [IST]

Gold rallied in trade in the international markets pushing gold on the MCX higher. Gold for Feb delivery was trading higher by Rs 333 on the MCX at Rs 28,571, while silver was trading higher by a staggering Rs 1,171 per kg.

Gold in the international markets rallied as investors were back again after prices slumped to a near six month low.

There were reports that Chinese buyers returned to buy gold also supported prices.

After rallying for the last 12 years, gold fell for the very first time in 2013. In fact, the loss was a staggering 28 per cent (international prices) for 2013, making it the biggest fall in almost 36 years for gold. Check gold rates in your city here

Fears that the Federal Reserve would continue to scale back its massive asset purchase programme weighed on sentiments.

Last month the Federal Reserve said that it would begin reducing its asset purchase or QE3 programme from Jan 1, 2014 by as much as $10 billion. If the Fed continues to reduce its asset purchase programme through the year, it could weigh on sentiments. Read more about QE3 here

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Story first published: Thursday, January 2, 2014, 12:09 [IST]