MUMBAI: Gold futures in the Indian bullion market went up on Friday thanks to worries that global inflation rate is going up because of the economic slow down in the United States.
Open interest for April gold on MCX was at 10,869 lots, down from 10,913 on Thursday. Analysts said the April contract on the Multi Commodity Exchange of India Ltd to range within 11,530 rupees per 10 grams and 11,660 rupees.
Kiran Mehta, a bullion analyst in Mumbai said that to the gold prices surged thanks a World Gold Council report. It said the gold demand in India, the world's largest consumer of jewellery, declined sharply by 64 per cent to 83.9 tonnes during fourth quarter as compared to 230.1 tonnes during the same period previous year due to volatile price movement.
Gold prices during quarter also touched a record high of over Rs 10,000 per 10 gram. "The Q4 demand was the lowest fourth quarter in tonnage terms since the early 1990s, a point that serves to emphasise the importance of gold price stability to the Indian consumer," the WGC report noted.
It said the investment purchases of gold appear to have been more resilient to the price changes during the last quarter. However, the investment demand continues to be encouraged by the rising price of gold, which ge nerated returns of around 16 per cent in rupee terms last year.
The yellow metal traded overseas at $909 an ounce, up slightly from the previous day, but off its all time highs of $936.50 on Feb 1.
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