Gold prices up 5% on firm demand in domestic markets

Tracking a firming trend overseas as investors increased physical purchases, gold prices rose by 0.25% to Rs 26,429 per 10gm in futures trading today.

Tracking a firming trend overseas as investors increased physical purchases, gold prices rose by 0.25% to Rs 26,429 per 10gm in futures trading on Tuesday.

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Besides covering-up of short positions by speculators fearing further rise, firm demand in the domestic spot markets also influenced gold prices.

At the Multi Commodity Exchange, metal for delivery in June contracts gained Rs 63, or 0.25%, to trade higher at Rs 26,429 per 10gm in a turnover of 1,725 lots.

Similarly, the metal for delivery in June contracts edged higher by Rs 64, or 0.24%, to Rs 26,829 per 10 gm, clocking a business volume of 60 lots.

At the spot markets, gold traded Rs 300 higher at Rs 27,400 per 10gm in the national capital in Monday's trade. In the last three days prices have gone up by Rs 1,050.

Analysts said sustained rise in the global markets after investors increased physical purchases after recent plunge, supported the rise in gold prices at futures trade here.

Further, covering-up of short positions by speculators and rising demand at current levels in the domestic spot market also influenced prices, they said.

Globally, gold climbed 0.30% to $1,430.52 an ounce in Singapore on Tuesday.