Gold logs biggest weekly gain in nearly two years

Last Updated: Saturday, July 13, 2013 - 09:27

Zee Media Bureau

New Delhi: Gold price in overseas markets, moved marginally lower on Friday but logged its biggest weekly gain in nearly two years on easing fears of an early end to US monetary stimulus that has boosted bullion's appeal as a hedge against inflation.

The metal gained 7.8 percent for the week, its biggest weekly climb since October 2011 when it rose 6.2 percent.

At the Multi Commodity Exchange (MCX), gold for delivery in August slipped by Rs 71 to close at Rs 26,606 per ten grams.

Similarly, silver for delivery in September declined by Rs 397 to Rs 41,300 per kg.

'Not wise to invest in gold at current level'

The yellow metal rallied after Fed Chairman Ben Bernanke on Wednesday said a highly accommodative policy was needed for the foreseeable future as inflation remains low and the employment rate may be overstating the health of the labour market.

Minutes from the June Fed policy meeting also showed that about half of the bank's policymakers felt the stimulus programme should be brought to a halt by year end, but many wanted reassurance the US jobs recovery was on solid ground before any policy retreat.

Spot gold last traded down 0.2 percent at USD 1,282.06 an ounce, snapping a four-day winning streak.

In New York, gold for August delivery edged lower USD 2.30 or 0.2 percent to settle at USD 1,277.60 an ounce on the Comex division of the NYMEX. For the week, prices were 5.4 percent up. That was their first weekly gain in four weeks, and the biggest weekly percentage climb since the week ended Oct. 28, 2011.

In Delhi spot market, both the precious metals, gold and silver, fell on sluggish demand at prevailing higher levels and a weak global trend.

Gold slipped by Rs 25 to Rs 27,300 per 10 grams after climbing a three-week high of Rs 27,325 Thursday, while silver fell by Rs 220 to Rs 41,530 per kg after surging by Rs 1,400 in the previous session.

With Agency Inputs

First Published: Saturday, July 13, 2013 - 09:24

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