Tue Sep 8, 2009 11:49am IST
(Reuters) - India gold futures were higher on Tuesday tracking overseas cues, analysts said.
U.S. gold futures hit a six-month high of $1,000 and spot gold also rose to six-month high on Tuesday as the dollar's weakness, concerns about the sustainability of the global economic recovery and worries about inflation underpinned sentiment.
Gold is considered as a safe hedge investment against economic uncertainties for investors who are averse to risk.
The precious metal often moves in the opposite direction to the dollar, as it is seen as an alternative to holding the U.S. currency.
Some market players were cautious about prices sustaining at $1,000, saying the rally had been driven by speculators and gold was an expensive buy in historical terms.
"In today's session we could see highly volatile trading in gold... expect gold to trade on higher side in range of 15,640- 15,900," said Kapil Gandhi of STCI Commodities.
Futures have topped $1,000 nine times -- three times this year and six last year, including a record $1,033.90. Spot prices have risen above $1,000 just four times - once in February and three times in March 2008, when they hit a record $1,030.80.
Indian gold futures are not delivery-based commodities and mirror international trends.
http://in.reuters.com/article/topNews/idINIndia-42294320090908?sp=true
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