Gold futures remains up, crosses $1,600 level overseas

Continuing its winning streak, gold prices rose further by 0.12% to Rs 23,258 per 10 grams in futures trade today after it crossed the 1,600 dollar an ounce level overseas for the first time.

At the Multi Commodity Exchange, gold for delivery in August gained Rs 31, or nearly 0.12%, to Rs 23,258 per 10 grams, with a business turnover of 238 lots. It had closed 0.7% higher at Rs 23,227  per 10 grams in the previous session, after hitting a record of Rs 23,291.

Similarly, the yellow metal for delivery in October moved up by Rs 30, or 0.10%, to Rs 23,548 per 10 grams, with a turnover of six lots.

Analysts attributed the rise in gold futures prices to a firming trend overseas, where the precious metal crossed a crucial $1,600 an ounce level for the first time as debt concerns in Europe and the US boosted demand for the metal as a protection of wealth.

At Mumbai, gold prices had shot up by Rs 275 to Rs 23,285 per 10 grams in yesterday's trade.

Meanwhile, gold rose by 0.69% to an all-time high of $1,605.10 an ounce in New York in yesterday's trade.