Gold rises on weak dollar, fall in global equities

MUMBAI: The most active gold contract on the Multi Commodity Exchange traded 0.3% up at Rs 27,254 per 10 gm on Wednesday, a day after it gained Rs 919 because of a weaker dollar and a fall in global equities.

MCX gold tracks the price of the metal traded on the US-based bourse Comex.

Jewellers, however, said demand was low as the wedding season is about to conclude and Shradh, considered an inauspicious period by Hindus, begins on December 15.

“Demand for gold is low,” said Kumar Jain, a retail jeweller in Mumbai's famous Zaveri Bazaar gold market.

The rise in price on MCX has been accompanied by a jump in traders' outstanding positions or open interest intra-day. This indicates creation of bullish bets, which means traders expect gold to rise more.

Ram Pitre, head of commodities at Anand Rathi, expects gold to test the $1,240 an ounce level this week.