Gold extends upward journey by Rs 250; Silver regains 43K
Zee Media Bureau
Gold prices rose for second-straight session in early trade Thursday, in tandem with continued recovery in international markets on the back of rising physical demand.
Silver regained its Rs 43,000-level in futures trade.
At the Multi Commodity Exchange (MCX), metal for delivery in June contracts climbed by Rs 253 to trade higher at Rs 26,641 per ten grams.
Silver for delivery in May contracts increased by Rs 669 to Rs 43,561 per Kg.
Gold in overseas markets, which normally set price trend on the domestic front, surged by 14.50 or 1.01 percent to USD 1,447.00 per ounce.
Apart from speculative buying, gold price in international markets also got support from weak German economic data, which fanned speculation the European Central Bank could cut interest rates.
But strong US dollar coupled with firming equities and continuous decline in holdings by exchange-traded funds looks set to cap prices.
In global markets gold prices sank to around USD 1,321 on April 16, the lowest in more than two years, in a sell-off that surprised ardent gold investors and bulls.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.38 percent to 1092.98 tonnes on Wednesday from 1097.19 tonnes on Tuesday. The current holdings are at multi-year low.
With Agency Inputs