The most actively traded gold contract on MCX, for December delivery opened at Rs 26,880 per 10 grams and was trading in the range of Rs 26,881 – Rs 26,884 per 10 grams at 11:58 am.
And, the metal for February contract delivery opened at Rs 27,130 per 10 grams was trading in the range of Rs 27,143 – Rs 27,154 per 10 grams same time.
Last week same time, the gold for December delivery contract was trading in the range of Rs 26,464 – Rs 26,480 per 10 grams. The metal has added Rs 400 over its prices this week.
Ongoing festive demand is making speculators more enthusiastic about the gold encouraging them to open up fresh positions on the commodity exchanges.
Physical demand is also seen up in domestic markets ahead of Diwali, the biggest Indian festival.
Europe’s debt concern is another very reason forcing investors and traders across the globe to divert their investments towards precious metal over its safe haven appeal.
In addition to the above reasons, China, which is the world’s another big consumer of gold also reported a dip in its inflation numbers, easing worries of further tightening. Easy monetary policy in China may lift up demand for gold further.
Analysts see the huge demand coming from India and China, which may result into prices to move up further.