Gold futures rebound on short-covering

Gold prices recovered by 0.49% to Rs 31,047 per 10 grams in futures trade today as speculators preferred to cover-up their short positions even as metal remained weak in the overseas markets.

At the Multi Commodity Exchange, the April contract moved up by Rs 152, or 0.49%, to trade at Rs 31,047 per 10 grams, with a turnover of 122 lots.

The February contract gained Rs 137, or 0.45%, to Rs 30,619 per 10 grams, with a business volume of 2,509 lots.

Marketmen said gains in gold prices at futures trade was mostly supported by covering-up of short positions by speculators but a weak trend in the precious metal overseas, capped the gains.

 

Globally, gold fell by 0.70% to $1,635.70 an ounce in early trade in Singapore, the lowest level since August 22.