Investors seek safe haven, gold rally on

Published: Saturday, November 12, 2011, 13:08 [IST]

Investors maintained their bullish sentiments over in India as US gold edged up on Friday.

MCX gold futures, which were seen steady on Friday afternoon, rose on Saturday during early session of trade.

The most-active gold contract for December delivery opened high at Rs 28,910 per 10 grams, seen trading at Rs 28,895 – Rs 28,898 per 10 grams at 12:40 pm IST. The contract had already broke level of Rs 29,000. It may rise further, if international gold prices continue their upward trend.

On the global front, gold rallied and was seen at $1,788.56 a troy ounce.

Sign of optimism from euro zone lifted up the price of gold in US markets as investors sought safety in the precious metal.

Over in Europe, the European Union presented some austerity measures to Italy, which has been approved by the Italy's Senate, which sent hopes to the investors that Italy's debt crisis have been averted for time being.

The Euro surged against the US dollar from its one-month low after the news. As gold is priced in US dollar, the buying interest rose among the investors as the dollar fell.

Analysts expect the rally may continue further and prices could reach $2,000 a troy ounce soon.

Back to India, domestic bullion price rose further by Rs 30 per 10 grams, the price of 24 carat gold stood at Rs 29,260 per 10 grams and that of 22 carat gold stood at Rs 27,380 per 10 grams.

GoodReturns.in

Story first published: Saturday, November 12, 2011, 13:08 [IST]

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