Gold edges lower in today’s trade tracking global markets

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Gold edges lower in today’s trade
Gold, after ruling high in yesterday"s trade took a quick turnaround and has been trading low since morning following global peers.

At the Multi Commodity Exchange, gold for delivery in October opened at Rs 28,175 per 10 grams and was trading in the range of Rs 28,094 – Rs 28,097 per 10 grams around 11:50 am IST.

Similarly, the metal for April contract delivery opened high at Rs 29,000 per 10 grams and was trading in the range of Rs 28,892 – Rs 28,954 per 10 grams.

Some expect gold prices to turn volatile again after a weekend meeting of Group of Seven finance ministers, at which officials of industrialized countries are expected to come under heavy pressure to revive economic growth.

Gold also declines due to stronger dollar. Gold and Dollar share an inverse relationship with each other so if one is rising other prefer moving down.

Dollar gained yesterday against major currencies by hitting a six month high against Euro after the European Central Bank President Jean-Claude Trichet resigned. President also said the region"s economy is facing high uncertainty and intensified downside risks, which drove Euro down against all major currencies.

Gold also swung between highs and lows tracking its contrary friend dollar.

Read more about: gold, mcx, dollar, euro
Story first published: Saturday, September 10, 2011, 12:35 [IST]
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