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Gold price zooms over Rs 700; retraces $1,300-level overseas

Last Updated: Thursday, July 11, 2013 - 14:33

Zee Media Bureau

Gold prices rallied by Rs 708 to Rs 26,811 per ten grams in futures trade Thursday as market players created fresh positions, largely in tandem with a firming trend overseas after Federal Reserve Chairman Ben Bernanke backed sustained stimulus for some time.

At the Multi Commodity Exchange (MCX), gold for delivery in August zoomed by Rs 708 to Rs 26,811 per ten grams as against its previous close of Rs 26,103.

Similarly, silver for delivery in July spurted by Rs 1,686 to Rs 41,860 per kg from Rs 40,168 on Tuesday.

Gold price in overseas markets, rose to its highest in more than two weeks on Thursday after Federal Reserve Chairman Ben Bernanke said the US central bank will continue to pursue an accommodative monetary policy for now to support the economy.

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 up 2.49 percent or USD 31.40 at USD 1,295.30 an ounce, extending gains into a fourth day. It earlier climbed to USD 1,300 - its highest since June 24.

In New York, gold for August delivery rose USD 1.5 or 0.1 percent to settle at USD 1,247.40 an ounce on the Comex division of the NYMEX yesterday.

Just after the release of the minutes, August gold rose further, to USD 1,261 an ounce in electronic trading.

With Agency Inputs

First Published: Thursday, July 11, 2013 - 10:19
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