Gold soars as investors find a safe haven in metal

KOLKATA: Gold futures soared on the Multi Commodity Exchange on Monday as bullion traders saw more investors seeking refuge in the ‘safe heaven’ amid growing global uncertainties following Britain’s decision last week to leave EU.

Gold for August delivery touched an intra-day high of Rs 31,649 per 10 gm but shed some of the weight to close at Rs 31,401, up Rs 214 or 0.68% from the previous close. Gold for October delivery had an even better run, touching the day’s high at Rs 31,941. It close at Rs 31,690, up Rs 221 or 0.70% from the previous close. This raised hopes of the traders, with some saying the metal can cross Rs 32,500 within a fortnight.

The conservatives among them, however, put the time frame at two months. “Gold price in India is already high, thanks to weak currency,” said G Srivatsava, president at Foretell Business Solutions, a commodity and bullion consulting firm. “Brexit might add further weakness to the currency. So, the local currency factor plus the surge in global gold price could push gold price in India to Rs 32,500 or higher in next two months.”