Euro, Greece Worries Boost Gold Sentiment

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Gold considered as a safe haven investment surged on Tuesday on the back of weak equities market all over the world.

Investors turned risk averse once again by selling equities and buying gold after fears that Greece would exit the euro zone, falling euro against the dollar and sharp drop in crude oil prices.

Euro, Greece Worries Boost Gold Sentiment

International spot gold was seen trading at $1,208 an ounce.

Gold is considered as safe haven metal in the time of turmoil or political uncertainties, which is why it rallied today However, any strength in the dollar could weigh on gold sentiment.

A strong dollar makes the yellow metal more expensive for holders of other currencies.

Tracking overseas trend, gold futures on India rose. Gold futures for February 2015 contract, at MCX, was trading at Rs. 27,137 per 10 grams, up by 0.37 per cent. It touched an intra-day high of Rs 27,215.

Read more about: gold, equities
Story first published: Tuesday, January 6, 2015, 16:12 [IST]
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