Overseas gold prices are hovering around $1,800 an ounce, the level not that far from its highest peak of $1,900 an ounce.
On domestic front, the Indian gold prices have outpaced global gold prices due to ongoing wedding demand. At domestic bullion market, the price of 24 carat gold was seen at around Rs 28,850 per 10 grams, close to Rs 29,000, while the price of 22 carat gold crossed Rs 27,000-mark and was at Rs 27,070 per 10 grams.
MCX gold futures stood steady in line with overseas markets. The gold futures for December delivery contract on MCX opened at Rs 28,809 per 10 grams and were trading low in the range of Rs 28,742 – Rs 28,744 per 10 grams at 1:05 pm IST.
The gold futures contract for February delivery contract was trading in the range of Rs 29,048 – Rs 29,053 per 10 grams same time.
On the global front, the political instability still continues both in Greece and Italy. Investors are pessimistic about the euro zone, they tone that the European leaders will be unable to sort out nation's debt crisis.
Ongoing wedding season in India and rising consumption in China are also supporting prices to head further.