Gold up tracking overseas bargain-hunting

Gold up tracking overseas bargain-hunting

Mumbai: India’s gold futures were up on the Multi Commodity Exchange of India Ltd (MCX) on Wednesday tracking overseas markets, where the metal rose on bargain-hunting in the backdrop of global financial markets uncertainties.

“If the US fails to reach an agreement on the bailout of its financial companies, gold could rise," said Subodh Gupta, analyst at Anand Rathi Commodities.

Foreign gold, that guides the local market, gained on a weakening US dollar that raised the metal’s appeal as an alternate asset. In the local market, a weaker rupee against the dollar also supported gold, as most of the metal is imported and paid for in the US currency.

The benchmark December gold was expected to trade within Rs13,260 per 10 grams and Rs13,500, said Debjyoti Chatterjee, associate vice president at MAPE ADMISI Commodity Research. December silver on MCX was expected to trade within Rs19,700 per kg and Rs21,000, Gupta said.

December silver traded at Rs20,155 rupees at 11:11am.