Bullion held on positive ground on Thursday and was lifted after the Federal Reserve showed policymakers pleaded for keeping interest rates near historic lows for longer on the January meeting of minutes. A concern about the debt problems of Greece were intensified after Germany turned down a proposed bailout request for the prolongation of the Athens.
On the Comex, gold futures for April delivery rallied $15.20, or 1.27%, to trade at $1,215.40 a troy ounce after hitting a session high of $1,222.90. Silver also advanced 1.06 per cent to USD 16.67 an ounce.
The Greek authorities filed a request for extension of its existing loan agreement with the euro area, which difference of its rescue last Thursday.
But the German finance minister Wolfgang Schaeuble stated that “it was not a substantive proposal for a solution” and failed to meet the agreed criteria at the meeting of the Eurogroup of finance ministers from the euro zone on Monday.
According to the report, “many” legislators expressed support to maintain interest rates at current levels for longer and that higher rates too soon could weigh on economic recovery.
The moderates minutes drove investors to push back expectations for the first rate hike in the United States at least the latter half of this year.
Taking positive cues from global markets, At the Multi Commodity Exchange, gold for delivery in April surged by Rs 233, or 0.89%, to Rs 26,370 per 10 grams in futures trade today as participants created speculative positions.
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