Gold shines: International gold hits 3-week high

Business

oi-Sneha

By Sneha B K

Updated: Friday, November 9, 2012, 14:45 [IST]

Precious-metals shine more during the times of uncertainties but one should also keep in mind their inverse relationship with US Dollar.

International gold rose on hopes of a continuation of further monetary policy by the US Federal Reserve and also policy support in Europe boosted the yellow metal sentiments. Spot gold was seen trading at $1,734 an ounce, hitting three week high.

In India, gold futures rose as speculators enlarged their positions tracking firm global cues. Gold futures for December 2012 contract, at MCX, were trading at Rs 31,558 per 10 grams, up by 0.70% at 2.15 pm IST, after opening at Rs 31,388 per 10 grams.

Delhi spot gold was little changed from yesterday and was seen trading at Rs 32,040 per 10 grams and gold of 99.5% was seen at Rs 31,840 per 10 grams.

Festive and wedding season in India have kept gold under the shiny zone. On the domestic front, gold hasn't failed to lure the buyers this festive season.

Gold may see huge demand this month due to up-coming Diwali and Dhanteras which are the most auspicious events for the Hindus.

However, investors may constrain from buying due to rising prices.

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