Gold Continues To Explore Fresh Highs

Gold Continues To Explore Fresh Highs ; Gold had a promising time in the wake of strong fund buying and prices tested fresh all time highs yet again with the disappointing US Non farm payrolls data boosting the sentiments and making the commodity overcome the all important $1400 per ounce mark with ease. The prices were seen finding this level fairly difficult to overcome earlier in the fortnight ended 3rd December. The Nonfarm payrolls rose by just 39,000 in November, far lower than the 155,000 gain expected and continued to reflect that labor markets are a big thorn in the flesh for the US economy in an otherwise improving climate.

Gold was seen gaining at quick pace after dropping in the middle of last month. The commodity Gold stuck an all time high of above $1409 per ounce at the start of November as the safe haven demand for the commodity soared following the directives from the US Federal Reserve to resort to yet another round of quantitative easing. The Federal Reserve's announcement to pump $600 billion into the financial markets over the next eight months turned out a key driver for gold, which pared losses after the Fed meet on November 3rd and then extended its gains in an intense manner to approach a new watershed near $1400 per ounce.

However, one of the most supportive factors came from China. China approved the country's first mutual fund that trades in gold, offering the Chinese consumers a much easy way to invest in yellow metal. Further lending credence to the strong Chinese demand was data showing that China imported nearly 210 tons of gold between January and October in 2010, an increase of breathtaking 480% over the same period of the previous year. Chinese retail investors, it seems are rushing to buy gold coins, bullion and bars, as inflation soars to 25 month highs. COMEX Gold soared to a high of $1415 per ounce after non farm and closed at a fresh high of $1413.80 per ounce.

MCX Gold futures tracked their global counterparts quite smoothly with the modest setback in the Indian rupee pushing the local gold to all time highs of Rs 21000 per 10 grams for a while. The February 2011 futures on the MCX soared above Rs 20800 before dropping near Rs 20500 per 10 grams. Prices yet again launched a powerful comeback with the dismal non farm payrolls pushing up gold in dizzying manner as prices recaptured Rs 20800. http://www.indiainfoline.com/Markets/News/Gold-Continues-To-Explore-Fresh-Highs/3431367940 For the latest updates PRESS CTR + D or visit Stock Market news Today

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