The concern over the Euro Zone debt crisis intensified after a meeting of European Union finance ministers failed to defuse the region's fiscal woes, increasing speculation that sovereign debt crisis will spread to Italy and Spain.
Gold prices climbed around 10% in 2011 on the back of macro-economic and geo-political factors that boosted the demand for precious metals as a safe haven demand. Gold price reached an all time high of US$1,577.40 per ounce on May 2, 2011 due to rising global inflation, European sovereign debt crisis, weakening dollar and political violence in Libya.
Gold for August contract, at the Multi Commodity Exchange (MCX), closed at Rs. 22,696 per 10 grams, up by 1%, after opening at Rs. 22,516 against the previous closing price of Rs. 22,472. It touched the intra-day high of Rs. 22,722 with a business volume of 47,486 lots.
At COMEX, gold future for August contract closed at US$1,562.3 per ounce, up by $13.1, after opening at US$1,554.8 against the previous closing price of US$1,549.2. It touched the intra-day high of US$1,574.3 with a business volume of 164,491 lots.
Silver future for September contract, at MCX, closed at Rs. 53,911 per kg, up by 0.39%, after opening at Rs. 53,700 against the previous closing price of Rs. 53,699. It touched the intra-day high of Rs. 54,019 with a business volume of 107,590 lots.