KOCHI: A weakening rupee and higher price set by the London Gold Market Fixing pushed up gold prices per sovereign to Rs 22,360 in the Kerala market on Tuesday.
The price of a Troy Ounce reached $1623.5 in the London market and the rupee was trading 12 paise lower at Rs 56.05 against the US dollar in the forex market. These two factors caused the price of one gram of gold to touch Rs 2,795 in the state.
Meanwhile, gold futures prices climbed to fresh highs of Rs 30,720 per 10 grams on Tuesday as speculators enlarged their positions. Rising spot demand in domestic markets for the wedding season and a weakening rupee also lifted the future prices. At the Multi-Commodity Exchange, gold for delivery in far-month October rose by Rs 113, or 0.33%, to trade at an all-time high of Rs 30,720 per 10 grams in a turnover of 701 lots.
Similarly, gold prices for delivery in August gained Rs 117, or 0.32%, to trade at record highs of Rs 30,428 per 10 grams, in a trade turnover of 12,796 lots.
Globally, gold prices rose 0.3% to $1,633.60 an ounce in Singapore. Market analysts said sentiment bolstered after gold firmed overseas on widening eurozone debt crisis, speculation that the Federal Reserve will act to spur growth, a weakening dollar and higher demand for the metal as an alternate investment.