India Gold, Silver Rise on Demand Increase

Source:

". . .gold hit a two-week high above $945.00 per ounce on Friday, lengthening its gains as the dollar retreated broadly"

Gold and silver rose in India's spot and futures trade Friday, mainly on increase in demand and firm global trends.

Spot gold prices rose towards Rs 15,000 levels while silver price rose further by 1.20% on increased buying by speculators.

On the Multi Commodity Exchange (MCX), gold for most traded August contract was seen trading at Rs 14,705 per ten grams at 4:57 p.m. Indian time while October contract was at 14,700 per ten grams at the same time.

Spot gold was seen trading at Rs 14,659 at the same time while sovereign was at Rs 11,723 per eight grams.

Silver for the most active July contract was seen trading at Rs 22,721 per kg with an open interest of 10,817 lots.

Similarly, silver for delivery in September contract moved up by 1.08% to Rs 22,855 per kg with an open interest of 5,725 lots.

Meanwhile, gold hit a two-week high above $945.00 per ounce on Friday, lengthening its gains as the dollar retreated broadly, while rising oil prices raised its appeal as a potential inflation hedge.

Spot gold touched a high of $945.80 in early European trade, from $938.55 quoted late on Thursday in New York.

Global stocks rallied while the dollar fell against a basket of currencies bolstered by a return to risk-seeking behavior after remarks by the U.S. Federal Reserve convinced investors that borrowing costs would stay near zero and the debt-buyback program would continue apace.

Despite the brighter approach to risk, the weaker U.S. unit made dollar-denominated gold cheaper for holders of foreign currencies.

However, holdings at the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.5% to 1,125.74 tons as of June 25, down 5.5 tons from the previous business day.

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