Gold up by Rs 200 on weak rupee

Gold for December contract on MCX opened at Rs 25722 per 10 gm on Monday – higher by Rs 200 in comparison to Friday’s closing. Price of gold rose on account of rupee weakening in morning session by 0.30 per cent when it touched 66.49 against dollar.

Later, rupee corrected and gold price was hovering around Rs 25,709 per 10 gm during mid-day. "This is a good opportunity for the investors to invest in the yellow metal. However, there is a feeling among the investing community that gold might fall further going ahead as Fed may hike rate which will bring down prices of gold. But there is hardly any asset in the market which is giving good returns. Equity market too has crashed," said C.P. Krishnan, director, Geofin Comtrade.

Internationally gold was trading at $1093.06 per troy ounce. It has inched up by $5 dollars per ounce from its previous closing of $1088 per ounce. Since October 15 prices of gold has declined substantially. The international price of gold on October 15 was $1190.63 per troy ounce.