Spot Trading in Gold, Silver Surges in India

Source:

"Whenever gold falls, there is a flow of funds into ETFs."

Spot trading in gold and silver continues to rise in India's spot commodity exchanges. The National Spot Exchange Limited (NSEL), promoted by India's leading commodity bourse MCX said on Friday that E-Gold demat contract recorded volume of 18150 units (1 gram each) and closed at Rs. 1703.40/ gram.

NSEL has recorded a turnover of Rs 647.17 lakhs with total of 145 trades at the end of the first trading session. The turnover in bullion was Rs. 363.29 lakhs and in agri commodities Rs. 283.88 lakhs.

While Gold Mini Hyderabad for 10 GRAMS was at Rs 16930, E-Gold demat for 1 GRAMS was Rs 1703.40 and Silver Jaipur 1 KGS was Rs 27325.

Gold traded higher in the India domestic markets with overseas market. In the domestic market, gold is trading near to Rs.16750/10 gram levels. The gold mini of Hyderabad delivery traded higher by Rs.8/10 gram from its previous close to settle at Rs.16930/10 gram. Total quantity of gold traded till 6.00 pm is 18.45 kg.

Gold hit a three-month peak on Friday as lingering concerns over Greek debt spurred safe haven buying, sending holdings in the SPDR Gold Trust to record levels.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, holdings hit an all-time high at 1,140.433 tons as of April 8. Whenever gold falls, there is a flow of funds into ETFs, which could mean that participation of new money into the market.

The strong investment demand boosted sentiment it was also supported by strong physical buying around the globe.

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