Gold regains Rs 29,000-level on weak rupee


25/05/2012 06:22 AST  Business Standard

Gold prices rose by Rs 91 to Rs 29,060 per 10 grams in futures trade today even as the precious metal weakened in global markets.

Pick-up in the spot demand and a falling rupee, pushed gold prices back to the 29,000-level in the futures market today.

The rupee, which hit a new low of 56.38 against the dollar, has been weakening for the last seven days. A weak rupee makes dollar-denominated commodities more expensive to import.

At the MCX, gold for delivery in June rose by Rs 91, or 0.31%, to Rs 29,060 per 10 grams, with a business turnover of 4,401 lots.

Likewise, the metal for delivery in August moved up by Rs 79, or 0.27%, to Rs 29,390 per 10 grams in 585 lots.

Market analysts attributed recovery in gold prices at futures trade to a weakening rupee and pick up in spot demand.

Meanwhile, gold prices fell 0.5% to $1,553.82 an ounce in Singapore today.

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