Gold regains 17-K, Re gains 42 paise
A sustained weakness in dollar value overseas has the gold in domestic markets surging by Rs 170 per 10 grams to regain the psychologically important Rs 17,000 level and the rupee soaring by 42 paisa against the US currency.business Updated: Jan 11, 2010 22:07 IST
A sustained weakness in dollar value overseas has the gold in domestic markets surging by Rs 170 per 10 grams to regain the psychologically important Rs 17,000 level and the rupee soaring by 42 paisa against the US currency.
Another precious metal silver too surged by Rs 305 per kg to conclude the day at Rs 29,015.
However, equity markets were flat with benchmark Sensex closing with a moderate loss of 13 points at 17,526.71, with investors preferring alternate options currency and metals.
Standard gold (99.5 purity) shot up by Rs 170 per 10 grams in Mumbai bullion to close at Rs 17,045. Pure gold (99.9 purity) hardened by a similar margin of Rs 170 per 10 grams to end at Rs 17,130.
Prices rose in Chennai by Rs 150 to Rs 17,125 per 10 gram and in Kolkata it was up Rs 250 at 17,305.
Dealers said gold prices rose after global rates firmed up. In global markets, gold rose 1.7 per cent in Europe to a five-week high of USD 1,157.70 triggered by a weakness in the dollar on indications that economic recovery is still on a weak wicket.a
Dollar turned weak against rivals like euro and yen after the US employment data showed that 85,000 jobs were lost last month.
In the forex market, the rupee rallied by 42 paise to close at a 16-month high of 45.34 against the US dollar on heavy selling of the American currency by exporters and banks.
Forex dealers attributed the sharp rally in the rupee to subdued dollar overseas against its major rivals.