Gold up by 0.6% on short-covering

Gold prices were up by Rs 171 to trade at Rs 27,695 per 10 gram in futures trade today as speculators covered-up positions even as the metal weakened overseas.

At the Multi Commodity Exchange, gold for delivery in February month rose by Rs 171 or 0.62% to Rs 27,695 per ten grams in business turnover of 231 lots.

Similarly, the metal for delivery in far-month June contract traded higher by Rs 147 or 0.53% to Rs 27,887 per ten grams in 4 lots.

Analysts attributed the rise in gold prices to covering-up of positions by speculators.

They said, however, a weak global trend where gold fell from the highest level since October after the US jobless rate slid to a 2008 low and hourly earnings rose more than estimated, bolstering the case for the Federal Reserve to tighten monetary policy, capped the gains.
 

Globally, gold lost 0.8% to $1,164.50 an ounce in Singapore.