Gold ruling high due to US and Euro uncertainty

Published: Tuesday, July 19, 2011, 13:45 [IST]

Global economies are swinging on the pendulum of uncertainties, which in turn is boosting demand for the precious metal 'gold' in the market. Gold prices are making records each day reflecting worries around the Euro zone and the US.

Spot price for Gold at MCX was seen at Rs 23,219 per 10 grams at 1:14 p.m today. And, MCX Gold August Delivery Futures was hovering around Rs 23,291 – Rs 23,293 per 10 grams same time.

Price of gold has moved up by Rs 1000 at MCX in last two weeks

The gold rally stems on the pillars of US debt ceiling negotiations, Eurozone sovereign debt crisis and emerging economies' inflation pressures.

Most of the Asian stocks also witnessed global turmoil. Lawmakers in Washington still under the deadlock position on an agreement to avoid a US default.

Investors are concerned about a possible financial crisis despite European Banking Authority stress tests Friday showing only eight out of 91 lenders failed.

Globally, investors are diversifying their portfolio towards gold to safeguard their funds.

Experts also show bullish signs for gold this year as global economies might take tough time to regain their health.

OneIndia Money

Story first published: Tuesday, July 19, 2011, 13:45 [IST]

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