Gold futures prices recover on global cues, short covering

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SummaryGold for delivery in December traded Rs 249 higher at Rs 30,320 per 10 gram in business turnover of 643 lots.

Gold futures prices today recovered by 0.49 per cent to Rs 30,320 per 10 gram as speculators enlarged their positions, driven by a firming trend overseas as the dollar weakened and lower prices spurred demand in China.

Besides, covering up of pending short positions by speculators too supported the recovery.

At the Multi Commodity Exchange, gold for delivery in December traded Rs 249, or 0.49 per cent, higher at Rs 30,320 per 10 gram in business turnover of 643 lots.

The metal for delivery in far-month February 2014 contracts moved up by Rs 109, or 0.37 per cent, to Rs 29,430 per 10 gram in a turnover of 89 lots.

Market analysts said a firming trend in the global market where gold rebounded from a four-month low as the dollar weakened and lower prices spurred demand in China, the second-largest consumer, helped the precious metal to trade higher in futures trade here.

Covering up of short positions by participants too influenced gold futures prices, they said.

Meanwhile, gold rose by 0.60 per cent to USD 1,258.30 an ounce in Singapore, the highest level since November 20.

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