Gold futures on the Multi Commodity Exchange (MCX) continue to shine, as concerns about the health of the global economy continues to drive investors to the safety of the yellow metal. A weak rupee also added to the luster of the gold. MCX gold contract for October today touched a record high of Rs. 26,568 per 10 grams. All the running contracts - for October, December and far-month February delivery - were trading at a record high. Investment demand in the country surged 78% to 108.5 metric tons in the second quarter, while jewelry demand rose 17% to 139.8 tons, the World Gold Council said in a report today. Global gold demand fell 17% to 919.8 tons in the quarter, it said. Gold rose for a fourth day as forecasts for a slower economic expansion in China added to signs that major economies may be weakening. Spot gold gained as much as 0.3% to US$1,795.85 an ounce, and traded at US$1,795.50 at 2:10 p.m. in Singapore, reversing a loss of 0.4%. December-delivery gold rose as much as 0.3% to US$1,798.70, also overturning a 0.4% decline. Futures closed at a record settlement US$1,793.80 yesterday as investors sought to hedge against accelerating prices. Spot silver was static at US$40.3175 an ounce, after reaching a two-week high yesterday. Cash palladium gained 0.5% to US$778.25 an ounce, while platinum was little changed at US$1,842.50 an ounce. Meanwhile, the Indian rupee today fell to a six-month low, as strong dollar demand from oil importers, weak local shares and declines in other Asian currencies weighed on the Indian unit. Morgan Stanley cut its GDP growth forecast for India to 7.2% for the year ending March, from 7.7% earlier, citing a less favorable global environment, according to a research note released today. Morgan Stanley and Deutsche Bank cut their forecasts for China’s GDP growth, citing weakness in the US and Europe. In Japan, exports fell more than expected in July, according to data today.

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