Zee Media Bureau
Mumbai: Gold moved marginally higher in futures trade on Tuesday as participants engaged in enlarging their positions mostly supported by a firming trend overseas after the recent plunge boosted physical demand for the precious metal.
Besides, covering-up of short positions by speculators on fears of further rise in the prices, also supported the upside.
At the Multi Commodity Exchange (MCX), metal for delivery in June contracts gained Rs 63, or 0.25 per cent, to trade higher at Rs 26,429 per 10 gm in a turnover of 1,725 lots.
Similarly, the metal for delivery in June contracts edged higher by Rs 64, or 0.24 percent, to Rs 26,829 per 10 gm, clocking a business volume of 60 lots.
However, Silver for delivery in May contracts dropped by Rs 282, to Rs 26,392 per Kg.
At the Mumbai spot market, Pure gold of 99.9 per cent purity rallied by Rs 445 to finish at Rs 26,840 per 10 gms from Rs 26,395.
Silver ready (.999 fineness) rose by Rs 515 to conclude at Rs 46,180 per kg from Rs 45,665 last weekend.
Gold rose USD 2.72 an ounce to USD 1,427.86, well below a lifetime high of around USD 1,920 in 2011. Prices sank to around USD 1,321 on April 16, its lowest in more than 2 years, and gold has dropped around 15 percent this year.
But more outflows from gold exchange-traded funds summed up investors' weakening confidence in the metal.
Holdings on SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, tumbled to their lowest level since early 2010, which indicated that some investors were shifting their money into equities.
With PTI Inputs