Bull catches gold, bear tightens grip on the cash market
MCX Gold April 5 Future was trading 0.80% up at Rs 30,534 at 5.10 pm, same as intra-day price, following the global trend
Even as the bloodbath in equity market persists, gold soared to over 14-month high of Rs 31,600 per ten gram, gaining Rs 330 at the bullion market today.
Open interest increased 3.66% in gold, while April 5 Silver Future per kg was trading 0.73% up at 5.25 pm.
MCX Gold April 5 Future was trading 0.80% up at Rs 30,534 at 5.10 pm, same as intra-day price, following the global trend.
According to a World Gold Council (WGC) report, India's gold demand grew 9.1% to 727 tonnes in 2017 due to low prices coinciding with Dhanteras, positive economic backdrop and improved consumer sentiment, especially in rural areas.
WGC said in its latest Gold Demand Trends report that total demand stood at 666.1 tonnes in 2016.
The gains were also supported by strong demand from local jewellers to meet the wedding season demand.
The World Gold Council (WGC), however, said today that gold demand in India was likely to remain below its 10-year average for a third year in 2018 as higher taxes and new transparency rules on purchases may cap last year`s rebound in buying.