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Gold gains more bite on steep global stock rout

By Religare
|

The yellow metal continued its stellar run with prices spiking 1.5 per cent during late morning trade in the domestic market on Friday as a worsening global equity rout amid heightened fears of a China slowdown, sapped the lure for risky assets, bolstering the safe haven appeal of Gold.

Asian stocks slipped to a 17-month low while the S&P 500 index succumbed to its biggest loss since February 2014 overnight as investors shunned risky assets amid signs of faltering global growth. China's manufacturing slump worsened in August, with the index shrinking the most since early 2009, raising further concerns over the health of the world's second biggest economy.

 

A weaker dollar also boosted the demand for Gold as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand.

At the MCX, Gold futures for October 2015 contract is trading at Rs 27,252 per 10 gram, up by 1.50 per cent after opening at Rs 27,145, against the previous closing price of Rs 26,849. It touched the intra-day high of Rs 27,287. (At 11:23 AM).

Story first published: Friday, August 21, 2015, 12:20 [IST]
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