Gold regains sheen on weaker dollar, Ukraine fears
Posted By: Religare
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Gold futures rebounded in the domestic market on Thursday as deepening tensions between Russia and Ukraine boosted the safe haven demand for the bullion. The US accused Russia of directing a counteroffensive by rebels in eastern Ukraine and that the conflict is spreading to Ukraine's peaceful regions.
A weaker dollar also boosted the appeal of gold as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.
Gold futures for October 2014 contract, at MCX, is trading at Rs. 27,917 per 10 grams, up by 0.49 per cent, after opening at Rs. 27,824, against the previous closing price of Rs 27,780. It touched an intra-day high of Rs 27,934. (At 11:07 AM)