Gold inches up by Rs 200 as Italy crisis fears ease

Business

oi-Monika

By Monika Nihalani

Published: Monday, November 28, 2011, 12:04 [IST]

Gold inched up on the Multi Commodity Exchange after news floated that the International Monetary Fund (IMF) could aid debt-ridden Italy with 600 billion euros ($800 billion), reviving hopes among the investors.

According to Italy's leading daily newspaper La Stampa, IMF would guarantee rates of 4-5%, the rates better than the borrowing costs on commercial debt markets.

The Euro edged up against the basket of currencies, even US Dollar.

The fall in dollar also aided gold to inch up as gold and dollar generally move in opposite direction.

Gold for December futures on MCX added Rs 226 during the initial part of the trade. It opened at Rs 28,475 per 10 grams and touched a high of Rs 28,704. It was hovering in the range of Rs 28,654 – Rs 28,656 per 10 grams at 11:45 am IST.

Gold for February futures also displayed a similar trend. It was seen trading at Rs 28,968 per 10 grams same time.

Overseas spot gold crossed US$ 1,700-level back again.

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