ET:Gold up by 1%, biggest one-day gain in last 4 months
MUMBAI: Gold prices went up 1.4% on Friday at $ 1,590 an ounce on the back of recovering euro that prompted many investors to buy the precious metal. The bullion gained the biggest single-day in the last four months, giving some respite to traders and investors. Experts hope the prices to go up further.
India spot gold prices closed at Rs 28,527 per 10 gm, up 1.1%, giving confidence to consumers to stay invested. MCX gold extended its previous session's rally, tracking gains in the global market and on fragile rupee. Rupee had made a fresh low before showing a mild recovery.
"The gold prices in India can't be realized due to weakening of rupee. The rupee needs to be strengthened by 5-6% soon to gain profits," says a Mumbai-bullion dealer.
"India gold imports is expected to go up with such a recovery in prices," says Prithviraj Kothari, president, Bombay Bullion Association.
India's gold demand for the first quarter has dipped 27% than last year, where China is increasingly buying gold hedging against inflation, the world gold council said in its report. China bought 255.2 tonne, 10% more against last year, than India's 207.6 tonne. Expectations are for Indian investment to recover during the current quarter as the market adjusts to the new legislation and tax structure, particularly if price dip.
