The Hindu Business Line : Gold gains, reinstating its safe haven status

Mumbai, Sept.12 Gold was quoted at Rs 9,340 (.99.9 fineness) per 10 gms while silver was quoted at Rs 17,635 per kg in the local spot bullion market on Wednesday.

On the futures exchanges near month gold made a high of Rs 9,369 per 10 gm while silver made a high of Rs 17,658 per kg.

Positive factors like weakness in the dollar, which reached its all-time low of 1.3873 against the euro, technical breakout in international prices has supported the rally in the precious metals, said Mr Shailendra Kumar, Head, Commodity Research of Sharekhan Ltd.

Bullion has reinstated its status as a safe haven on traders perception that the US economy is going into recession, he added.

Edible oil complex has been lacking luster as the market is awaiting the new crop arrival, said an oil trader.

The weather is very good for the crop conditions as there is no rain and good sunshine indicating forthcoming bearish trend, he added.

Despite firm prices in the international edible oil market, domestic prices have been stable as the market awaits the new crop to arrive, which may lead to fall in the prices.

Metals flat

The base metals complex remained flat during trading on Wednesday, as there are no forthcoming factors forthcoming to support a price rally, said Mr. Dipen Udeshi of STCI Commodities.

Index down

The NCDEXFutexagri index of the futures prices was down 0.13 per cent valued at 1423 and NCDEX agri spot index was down 0.19 per cent valued at 1416.46.

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