Indian gold seen at new highs on back of weak dollar
15 Sep 2010
Indian gold futures are likely to hit a new record high this week on a weak dollar overseas and as investors worried about Euro-zone growth, analysts said.
"Data from Europe, especially from Germany, is not encouraging. Investors are again flocking back to gold," said Murukesh Kumar, senior analyst, JRG Wealth Management, according to a CNBC-TV18 report.
German analyst and investor sentiment fell much more than forecast in September, a survey showed on Tuesday, suggesting the recovery in Europe's largest economy will lose momentum.
At 7:26 p.m., the gold futures were trading 1.51 per cent higher at Rs19,145 per 10 grams, just below a record high of 19,211.
The contract is likely to set new record high this week, but it will struggle in sustaining gains above Rs19,200, Kumar said.
International gold rose on Tuesday to within less than 1 per cent of record highs after weak German data knocked equities and the euro, prompting a flurry of safe-haven buying. The most-active October gold contract on MCX was getting good support at Rs18,900 level, said an analyst at Karvy Comtrade.
