Gold retained overnight gains in Asia on Tuesday to trade near its highest in four weeks, but with a weak tone as investors eyed the dollar. MCX gold in the domestic market is trading around the upper level of a month. Although pressure from upper level has begun. There is a stronger bat rupee against the dollar today.
Also a massive sell in the stock markets was supported exchange-traded funds in gold (ETF) that appeal to investors for the first time within a month after the exit of heavy outflows.
In Comex gold futures for delivery in December quoted at $ 1,236.10 a troy ounce, up 0.06%, after hitting a intra session low over night of $ 1223.60 and a high of $ 1,238.00. Spot Gold for prompt delivery was bid at $ 1,234.55 an ounce in Singapore from $ 1,235.87 yesterday, when it rose to $ 1,237.86, the highest since September
Gold and the dollar tend to trade vice versa to each other.
Gold rose as the dollar fell on views the Federal Reserve will keep interest rates low due to a faltering global economy and hiking interest rates in 2015.
Higher rates have driven the dollar, but gold’s appeal dented non-interest bearing. Gold registered its best week in nearly four months last week, when the dollar fell after 12-week winning streak.
In the domestic market at MCX gold is nearly 0.5 per cent growth, and it is trading around Rs 27090. With 0.7 per cent growth, while silver is trading at Rs 38600.
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