Gold futures rose on Wed morning trade, while spot rates rose marginally yesterday as jewelers tried to replenishment of stocks and investors sought refuge amid geopolitical tensions.
June gold future contract up 0.28% to Rs 28,972 per 10 gm on MCX 1145 hours on Wednesday. While, prices hit an intraday high of Rs 28,997 and a low of Rs 28,943.
At the spot market, gold was quoted at 30,070 rupees per 10 grams versus Rs 30.000 to 30.030 for 10 gm on Tuesday.
Gold is hoped to be limited range this week unless the Ukrainian crisis escalates further, said Amit Sampat, director, Pushpak Bullions. He said that market demand was average.
“The jewelers are in reset mode, and who have to comply orders Akshaya Tritiya,” said Sampat. Gold rose to a three-week worldwide, as investors weigh the tension in Ukraine against signs of a global economy improves.
Bullion for prompt delivery gained as much as 0.4% to $ 1313.66 an ounce and was quoted at $ 1,312.02 at 1:42 pm in Singapore, according to Bloomberg generic prices. Gold rose to $ 1315.68 on 5 May, the highest level since April 15.
Gold has risen 9.2% this year, even though the U.S. Fed reduced monthly bond purchasing, with the tensions between Russia and Ukraine, the increased demand for “safe haven.” In China, the world’s largest consumer of the yellow metal, volumes for spot gold contract benchmark Shanghai up for a second day yesterday.
The crisis in Ukraine “means that there will a demand for insurance for gold and silver retreat, and we hope that in the short term, will have a positive effect,” Piet-Hein Ingen Housz, global head of metals at ABN Amro Bank NV, said in an interview with Bloomberg Television. “However, if the economies in the U.S. and Europe not really grasp, which will have a downward pressure on gold and silver in the long term,” he said.
The U.S. Ukraine called on to continue its presidential elections on May 25, rejecting calls from Russia to postpone the vote as the government in Kiev waging a crackdown on the separatists in the south and east of the country.
News by Economictimes