MUMBAI (Commodity Online): Gold prices surged firmly in mid London trade on Thursday as investors continued to rely on the yellow metal because of weak continues fall of US dollar against other currencies.
COMEX Gold futures for December bottomed out at 1084.30 an ounce and currently trade at $1089.10, up 1.80 cents from previous close.
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MCX Gold futures for December are trading at Rs 16586, down Rs 2 per 10 grams from the previous close with 1.16% drop in the open interest. The prices have come off from a high of Rs 16664 and there is clear selling pressure below Rs 15600. Watch out for further long covering in case the counter fails to break above Rs 15600.
US Dollar has lost out a bit, currently hovering at 1.4875 after coming near 1.4800 in Asian trades. Traders have been watching the movement in the gold market with a sharp gasp around $1100 keenly eyed.
Gold futures again hit record highs on Wednesday and are within striking distance of $1,100 an ounce, helped by the dollar's decline and improved sentiment after the International Monetary Fund completed a gold sale to India.
Gold futures closed up $12.80 at $1,097.70. Prices closed near the session high today and scored another fresh contract and all-time record high. Gains came amid a weaker U.S. dollar for most of the trading session.
This week's price action is a bullish upside "breakout" from the trading range at higher price levels and does suggest there is more room on the upside for prices in the near term.
