Weakness in the US dollar helped gold prices to witness gains in the international markets on Monday. A weaker dollar makes dollar denominated commodity cheaper for the holders of the other currencies.
Additionally, rise in crude oil prices also boost inflationled demand for gold yesterday. The yellow metal touched an intraday high of $1681/oz and closed at $1676/oz on Monday.
On the MCX, Gold February contract rose around 0.2 percent yesterday as further gains were capped due to appreciation in the Indian Rupee. The yellow metal touched an intra-day high of Rs27,594/10 gms and closed at Rs27,510/10 gms yesterday.
Holdings in the New York's SPDR Gold Trust, the world’s largest goldbacked exchange-traded-fund, declined about 0.4 percent to 1,250.53 tonnes on 23rd January 2012 from 1,255.67 on 20th January.
Silver
Spot silver prices rose around 0.7 percent on Monday, on the back of rise in gold prices coupled with a weaker dollar. Additionally, silver being an industrial metal also took cues from upside on base metals.
The white metal touched an intra-day high of $32.76/oz and closed at the level of $32.3/oz yesterday. On the MCX, Silver March contract rose around 1.3 percent and touched an intra-day high of Rs56,490/kg on Monday.
Courtesy: Angel Commodities
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