Gold extends gains to near record high

Gold extends gains to near record high

Mumbai: Gold futures rose on Wednesday afternoon, extending gains for a fifth session in a row, nearing its alltime high , as fears of euro zone debt crisis spurred safe-haven buying in the yellow metal, pushing traders to the sidelines, dealers said.

The most-traded gold for August delivery on the Multi Commodity Exchange (MCX) was trading 0.42% higher at 22,797 per 10 grams, after gaining 2.4% in the previous four sessions.

The contract had struck a high of 22,809, just 1% lower than the record high of 23,148 hit on 30 April.

“Demand is poor as prices have reached all-time high," said Mayank Khemka, managing director, of gold wholesaler Khemka Group, adding that buyers stayed away despite a discount of $3-$4 on London prices.

Overseas spot gold was trading higher at $1,574.55 an ounce, after hitting $1,572.96 in the previous session, barely $3 off the all-time high of $1,575.79 set on 2 May.

A stronger rupee kept a lid on price gains, dealers said.

The rupee was stronger in afternoon trade after back-to-back weaker sessions supported by positive local shares, Asian currencies and signs of stability in the euro.

India, the world’s biggest buyer of bullion, is in the middle of the sowing season, when farmers, the traditional buyers of the yellow metal, divert their savings to agricultural equipments and fertilizers.