Gold surges 1 per cent on global cues, spot demand
Covering-up by speculators who had created huge short positions, also helped gold to trade higher at futures trade.
New Delhi: Taking positive cues from the global market and rising physical demand in spot markets at prevailing levels, gold continued its recovery, rising by nearly one per cent to Rs 26,069 per 10 gm in futures trade on Saturday. Besides, covering-up by speculators who had created huge short positions, also helped gold to trade higher at futures trade.
At the Multi Commodity Exchange, the most-active delivery in June contracts traded Rs 265, or 0.99 per cent, higher at Rs 26,069 per 10 gm in a turnover of 5,506 lots. Similarly, the metal for delivery in far-month August spurted by Rs 241, or 0.95 per cent to Rs 26,475 per 10 gm, clocking a business volume of 155 lots.
At the spot markets, gold traded Rs 250 higher at Rs 26,600 per 10 gm in the national capital. At the spot markets, gold reclaimed Rs 27,000 level with prices rising by a whopping Rs 500 to trade at Rs 27,100 per 10 gm. "Besides, rising physical demand at current levels, covering-up of short positions by speculators, helped gold prices to rise at futures trade here," said an analyst.
Market analysts said recovery in the global markets as investors enlarged positions, taking advantage of the biggest plunge in prices in three decades, helped gold futures to extend its recovery move at futures trade. Further, rising demand at current levels in the domestic spot market also influenced prices, they said. Globally, gold climbed 1.4 per cent to $1,412.40 an ounce on the Comex in New York in Friday's trade.