The prices of gold soared above $ 1,100 level on Monday, because investors sought refuge from the heavy losses in global stock markets.
The CSI300 index tumbled 8.6 per cent to 3,818.73 points on Monday, while the Shanghai Composite Index lost 8.5 per cent to 3,725.56 points, the biggest one-day drop since February 2007 amid an unprecedented government rescue plan to prop up valuations ran out of steam, throwing Beijing’s efforts to stave off a deeper crash into doubt.
On the Comex Gold futures for August delivery jumped $18.70, or 1.72%, to trade at $1,104.70 a troy ounce.
The equity markets fell sharply in China earlier this month, forcing the authorities to intervene and provide measures to boost liquidity and calm investors.
Equity markets in Europe were also sharply lower following the opening, with the Euro Stoxx 50, the French CAC 40 and the German DAX 30 all dropped over 1%.
At the Multi Commodity Exchange (MCX), Gold August contract has been moving up by 0.56 per cent to 24870 level.
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