Gold futures breach Rs 19,000 per ten grams level on MCX

NEW DELHI: Gold futures in India, the world's largest bullion consumer, breached the Rs 19,000 per ten grams mark for the first time ever on the Multi Commodity Exchange (MCX) today.

The most-active August contract rose to a record Rs 19,198 per ten grams at the MCX counter. As much as 27,382 kg of gold was exchanged in this particular contract, the exchange data showed.

"Gold prices crossed Rs 19,000 mark for the first time at the MCX today on continued safe-haven buying overseas in the face of growing uncertainty in eurozone," Kochi-based commodity brokerage firm JRG Wealth Vice-President and Research Head Harish G told PTI.

Domestic gold rates have a direct correlation with global prices, which have also risen to USD 1,247 per ounce owing to increased demand, he said.

"This is a lifetime high in the futures market. Eurozone credit crisis has heightened the appeal of the safe haven metal. Many are withdrawing money from other assets and investing in gold, which is a hedge against inflation or any crisis," Delhi-based commodity brokerage firm SMC Comtrade Chairman and Managing Director D K Aggarwal said.

This apart, a rise in the dollar value has made gold costlier for Indians, he said.

"Going forward, both futures and the spot prices are expected to further go up to Rs 20,000 per ten grams in the next two months," he noted.

Presently, the domestic spot rates of yellow metal have also surged to Rs 19,222 per ten grams.