Brazen rally in gold continues; metal surges to record

Business

oi-Sneha

By Sneha B K

Published: Wednesday, September 5, 2012, 11:12 [IST]

Frenzied buying in gold saw the metal shine once again with Gold futures surging to track firm overseas global trends. On the Multi Commodity Exchange, gold futures for October 2012 contract, was trading higher at Rs 31,490 per 10 grams at 10.35 am IST.

Gold for December contract was even more bullish, trading higher at Rs 31,863 per 10 grams.

On Tuesday, gold broke hit a new lifetime high of Rs 31,850 per 10 grams, on sustained buying in the metal.

Sentiment was boosted after gold in the overseas market rallied to the highest level in more than five months as weak manufacturing data and stimulus hints from Federal Reserve Chairman, Ben Bernanke strengthened the belief of monetary easing by the US central bank.

Domestically, gold of 99.9% and 99.5% purity climbed by Rs 240 each to Rs 31,850 and Rs 31,650 per 10 grams, respectively.

Silver also rose tracking gold and crossed Rs 62,000 per kg. However, silver slipped today and was seen trading lower by 0.34% at Rs 61,809 on MCX.

Investors, will keep an eye on the Federal Reserve meeting on September 12-13 as they are hoping for another round of QE announcement from Ben Bernanke.

However, gold demand in India will remain dull as investors are shying away from buying as they wait for prices to come down.

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