Gold rally over S&P downgrade

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Gold rally over S&P downgrade
Gold price rose on Monday amid global economic and financial uncertainty. S&P's decision of downgrading nine euro zone nations rating have forced global investors to park their money in yellow metal as gold being the safest investment and hedge against global economic instability.

Weak trend in Asian market and fall in rupee value further boosted the sentiment.

At the Multi Commodity Exchange, Gold for February delivery opened at Rs 27,540 per 10 grams against the previous closing price of Rs. 27,507 and touched an intraday high of Rs 27,569 and was seen trading at Rs 27,530 – Rs 27,531 per 10 grams around 01.48 pm IST.

MCX spot gold also rose and was trading at Rs 27,431 per 10 grams, while spot silver fell to Rs 51,475 per kg.

US spot gold was seen hovering at $1,613.51 an ounce.

While, silver for March delivery on MCX opened at Rs 52,249 per kg and was trading in the range of Rs 52,251 – Rs 52,254 per kg same time.

Global investors are optimistic about the performance of gold as global worries continues as they consider it to be a hedge against the global uncertainties.

Read more about: gold, silver, mcx, standard and poor
Story first published: Monday, January 16, 2012, 14:07 [IST]
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