Gold prices continued the bull-run the second consecutive day on Tuesday by gaining Rs 200 to touch an all-time high of Rs 17,300 per 10 gram. The international prices too rose to $1143.30 an ounce, amidst buying by stockists and investors.
The yellow metal breached the psychological Rs 17,000 mark in the futures market. The December contract touched Rs 17,021 per 10 gm and the February contract saw a high of Rs 17,061 on the Multi Commodity Exchange. The trade volume also has been steadily increasing for the past two months. The open interest position has risen from 3,500 lots in mid-September to 16,000 in the second week of November, said head of research with JRG Wealth Management Harish Galipelli.
Most of the gold ETFs improved their holdings on Tuesday. The gainers included Gold Bees, Goldshare, Kotak Gold and SBI Gold. While a weak dollar increased the investment appeal in gold, Mauritius buying two tonnes of gold from the IMF for around $72 million has also pushed the prices higher.
“Gold had been on an upward march ever since the RBI bought 200 tonnes of gold from the International Monetary Fund. Speculations that around 15 countries are likely to hike their gold reserves have been increasing the demand for the yellow metal. The interest among investment firms too is running high during this bull-run,” said Gallipelli.
