Gold ruling high as Spain worries weigh

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Gold ruling high as Spain worries weigh
Gold's so called reputation 'flight to safety' title rekindled amid global economic and financial uncertainty. International spot gold was seen trading above US$1,612 a troy ounce.

Ballooning debt in the European region and hopes for further monetary easing is another factor motivating investors to park their money in gold. The increasing worries on the Spain's borrwoing cost supported the gold in today's trade

A surge in Spanish ten year bond yields raised fears that Europe's debt woes may be deepening, spurring safe haven demand for gold.

Gold for long has been considered a hedge against inflation and also yielded the best returns during the times of uncertainties. Many investors still feel it is one of the best bets in uncertain times.

Back to India, gold on Multi Commodity Exchange was trading at Rs 30,017 per 10 grams and reached intra-day high of Rs 30,069 per 10 grams. Domestic bullion prices also picked up reflecting overseas market, with gold of 99.9 and 99.5% purity was seen at Rs 30,400 and Rs 30,200 per 10 grams, respectively.

Investors across the globe, eye on the Greek elections which is held on June 17 and Federal reserve meet on June 19-20 for the further direction.

Read more about: gold, mcx
Story first published: Wednesday, June 13, 2012, 15:29 [IST]
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