Bullion market thumbs up Brexit: Gold price tops Rs 32,000 per 10 grams

Mangalore Today News Network

New Delhi, June 24, 2016:  Gold prices breached the Rs 32,000 per 10 gram mark by climbing over Rs 2,000 per 10 gram in futures trade Friday amid a firm global trend as the rupee breached the 68-mark against the dollar.

 

At the Multi Commodity Exchange (MCX), gold for delivery in far-month October went up by Rs 1,941 or 6.45 percent to trade at Rs 32,103 per 10 gram in a business turnover 544 lots.

Similarly, the yellow metal for delivery in August surged by Rs 1,935 or 6.47 per cent to Rs 31,849 per 10 gm in 7,153 lots.

Market analysts attributed rise in gold prices at futures trade to sliding rupee which tumbled to a low of Rs 68.21 (intra-day) by plunging 96 paise, making dollar-quoted precious metal expensive.

Besides, a firming trend in global markets where gold surged to the highest level in more than two years in a frantic global hunt for haven assets as Britain’s voters were projected to back leaving the European Union after a historic poll, supported the upside, they added.

Demand for safe haven assets like gold soared as the Britain’s pound plummeted to its lowest level in more than three decades after Brexit vote, pulling down financial markets globally.

Meanwhile, gold climbed 8.1 percent to USD 1,358.54 an ounce in London, the highest level since March 2014. The rally was the biggest daily jump since 2008.