New Delhi: Gold futures edged up on Monday, tracking global markets where the yellow metal is gaining lustre from the falling dollar and rising crude oil prices.
The most-active gold for April delivery on the Multi Commodity Exchange was up 0.31% at Rs 20,724 per 10 grams at 2:28p m local time.
“Gold will be bullish. Prices should be moving up because of dollar weakening and higher crude oil prices,” said Mayank Khemka, managing director of Khemka Group of companies, one of the largest importers of gold in the country.
Spot gold increased marginally while silver prices jumped to highest since early 1980 in Europe as higher oil prices amid the ongoing Middle East crisis and a firm euro on expectations of a European Central Bank rate hike lent support.
Banks, the primary dealers of gold, were closed on Friday for annual closing of books for the financial year 2010/11. They are closed in the financial capital Mumbai on Monday as well for a regional festival.
The high demand period, when a lot of weddings are scheduled, is currently underway in India which imported a record of a little over 900 tonnes during last year.