Gold prices regain Rs30,000 level in futures trade

MUMBAI-INDIA (Sept 14)  Gold prices reclaimed Rs30,000 level by gaining Rs497 to Rs30,068 per ten grams in futures trade Saturday as market participants enlarged their positions in tandem with a late bargain hunting in international markets yesterday.

At the Multi Commodity Exchange (MCX), gold for delivery in October recovered by Rs 497 to Rs 30,068 per ten grams as agaisnt its previous closing of Rs29,571.

Similarly, silver benchmark delivery rose by Rs1,092 to Rs50,502 per kg.

Gold price in overseas markets, which normally set price trend on the domestic front, rebounded on late bargain hunting, but poor technical momentum, easing tensions with Syria and expectations that the US Federal Reserve will unwind its monetary stimulus led to the metal's largest weekly loss since late June.

The US central bank's Federal Open Market Committee is set to release a policy statement at the end of its two-day meeting next Wednesday.

Spot gold last quoted at $1,324.26 an ounce, up 0.3% after hitting its weakest since August 8 at $1,304.56 earlier.

US gold futures for December also touched its lowest since August 9 at $1,304.60 an ounce and stood at USD 1308.60, still down $22.

The yellow metal lost nearly 5% this week for its biggest weekly loss since the week of June 28.

Gold rose to a 3-1/2 month high of $1,433.31 an ounce in late August on safe-having buying after the United States and its allies looked close to launching an imminent military strike on Syria.

Meanwhile, gold fell further by Rs50 to Rs30,750 per ten gram in Delhi bullion market after losing Rs570 in the previous two sessions, while silver dropped Rs2,000 to Rs50,300 per kg, after losing Rs 1,030 in last two days.