Gold rises; demand improves as jewellers buy

Gold rises; demand improves as jewellers buy

Mumbai: Gold futures rose on Monday chasing gains in the overseas markets, while demand in domestic spot market improved despite price rise as jewellers, who were waiting for a correction, made significant purchases, dealers said.

At 3:39pm, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was up 0.09% to 22,672 per 10 grams.

“Demand improved. For the past two weeks, demand was poor. Jewellers were waiting for a correction, but since prices started rising again, they entered the market," said a Mumbai-based dealer with a state-run bank dealing in bullion.

International spot gold rose for a second day on Monday, drawing strength from investor concerns over the outlook for US growth after Friday’s surprisingly weak employment data and a decline in the dollar to one-month lows.

The rupee, which has a bearing on the landed cost of dollar-quoted gold, was at 44.7150/7250 per dollar from previous close of 44.81/82 per dollar tracking a strong euro.