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Gold price zooms by Rs 334 in futures trade

Last Updated: Wednesday, May 22, 2013 - 20:16

Zee Media Bureau

New Delhi: Tracking a firm global trend, gold prices rose by Rs 334 to Rs 26,444 per ten grams in futures trade Wednesday as speculators enlarged their positions.

At the Multi Commodity Exchange (MCX), gold for delivery in June rose by Rs 334 to Rs 26,444 per ten grams as against its previous close of Rs 26,110.

Similarly, silver for delivery in July jumped by Rs 669 to Rs 43,839 per kg. The white metal settled lower by Rs 93 to 43,170 per kg on Tuesday.

Gold prices in overseas markets, which normally set price trend on the domestic front, extended their early gains smartly by over 2 percent today after Ben Bernanke in testimony offered no sign that he is ready to retreat from the Fed's latest round of bond buying.

"A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further,” Bernanke said in testimony to the Joint Economic Committee of Congress.

The yellow metal had fallen for eight sessions out of the last nine as of Tuesday and is down nearly 18 percent for the year.

Spot gold was last trading up USD 28.40 or 2.06 percent at USD 1,405.40 an ounce after hitting an intra-day high of USD 1,416, but remains not far off a two-year low of USD 1,321.35 reached during a sell-off last month.

With Agency Inputs

First Published: Wednesday, May 22, 2013 - 15:11
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