Gold in Asia touches new highs

Published: Monday, November 7, 2011, 13:46 [IST]

Gold prices touched a new highs on Monday in Asian trade as the fears eased among the investors after Greek government sealed a deal to form a coalition government to approve a euro bailout.

Spot gold was seen trading above $1,770 an ounce for the first time since September 22. It was seen trading in the range of $1,770.30 - $1,771.13 an ounce.

On the Euro zone front, Greece's Prime Minister George Papandreou and opposition parties came on consensus to form a new coalition government to approve a euro bailout fund which is due this month.

Greece's debt somehow will reduce but they will still be left with huge debt burden with the cut in government benefits and services.

Investors are also monitoring the situation in Italy, the another debt-ridden country of Euro zone which is facing political instability.

The prices of gold are reaching closer to their all time highs of $1,900 an ounce amid global economic uncertainties.

Globally, investors have extended their long positions in commodities like crude oil, gold and silver with the rising economic uncertainties on the hope that prices may move upwards.

Market analysts say gold may trade in the range of $1,740 - $1,820 an ounce this week.

GoodReturns.in

Story first published: Monday, November 7, 2011, 13:46 [IST]