Gold rallies again on sustained buying support

Published: Friday, January 3, 2014, 12:16 [IST]

Gold rallied in the international markets and on the MCX on sustained buying support at lower levels. Gold for Feb delivery was last trading higher by Rs 129 on the MCX at Rs 29,107, while Silver was trading higher by Rs 24 at Rs 45,382.

International Gold prices have begun the year on a buoyant note after dropping to a near six month low in the month of Dec.

It's likely that gold may continue to rally after the metal was completely oversold in the last few weeks. In fact, gold saw the biggest losses in 32 years in 2013 and dropped for the first time in 12 years. To check the latest gold rates click here

Gold may see some buying in 2014, but, much would depend on what happens with quantitative easing tapering in the next few months. A strength in the US economy would ensure that the Fed tapers its QE3 programme, which could put some pressure on gold prices in the next few months.

To read more on QE3 click here

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Story first published: Friday, January 3, 2014, 12:16 [IST]