Gold prices rise after pullback rally

MUMBAI: Bargain hunting at lower levels boosted gold prices, which witnessed a pullback rally from levels below $1,300 an ounce (32 gm). Gold for August delivery, which tracks the overseas rate, but excludes 1% VAT, gained three-fifths of a percent to Rs 27,837 per 10 gm in early trade.

Analysts expect the futures contract that expires August 5 to recapture the Rs 28,000 mark this week. The bargain hunting in the contract comes on the back of demand rising in China and India, the world’s largest consumers of the yellow metal.

Commerce ministry data show imports by India in June jumped 65% year-on-year to $3.12 billion after the RBI allowed more agencies to import the metal under the 80:20 scheme.