Prices of gold futures rose sharply on Tuesday towards $ 1,200 an ounce, as a broadly weaker US dollar boosted the appeal of the precious metal, while investors eyed gains in global bond yields. And stocks fell as rose oil. Other valuable metals also rose.
In London Bullion for immediate delivery climbed 0.9 percent to $1,194.10, while touching $1,197.21 earlier Tuesday. On the Comex, gold futures for June delivery jumped $10.30, or 0.87%, to trade at $1,193.30 a troy ounce.
The dollar index, which measures the strength of the greenback against 10 major counterparts, fell 0.66% to 94.48, closer again two months through last week of 93.96. European equities fell and stock-index futures fell, indicating a second day of losses for the Standard & Poors 500, as stocks continued lower worldwide.
Dollar weakness brought certain flows in the gold market. There are hopes that growing inflation in the future with higher in oil prices may catch people off guard.
Indian rupee, local currency ended at 64.17 on Tuesday versus the dollar due to falling Domestic Stock Markets and rising oil prices worldwide.
The Sensex fallen 2.29%, or 629.82 points, to 26877.48. Foreign institutional investors (FIIs) have been sold $ 2.34 billion in the equity markets in the last 15 of the 16 sessions, except on 21 April when FIIs bought $ 2.6 billion. In May so far, FIIs have sold $ 942.41 million in debt and $ 606,350,000 in equity.
Gold prices in far-month August rose at the Multi Commodity Exchange, by Rs 102 to Rs 27,161 per 10 grams as speculators enlarged positions amid a firming trend overseas.
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