Gold stages smart recovery; up 1% on bargain hunting
Zee Media Bureau
Emergence of bargain hunting after yesterday's fall, spurted gold price in international markets by more than 1 percent on Wednesday.
But firming US dollar coupled with strong equities and daily falls in holdings by exchange-traded funds looks set to cap prices.
Although demand for gold bars, coins, nuggets and other products have surged after prices plunged to their weakest in more than two years, investor confidence is still reeling after bullion's spectacular fall.
US gold for June delivery hit a session high of USD 1,424.90 an ounce, up more than 1 percent from the previous close and stood at USD 1,421.60 by 0209 GMT, up USD 12.80.
Cash gold added USD 10.07 an ounce to USD 1,422.31. Spot 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 0.68 percent to 1,097.19 tonnes on Tuesday from 1,104.71 tonnes on Monday. The current holdings are at multi-year lows.
With Agency Inputs