Forget recession, futures brighten for yellow metal

[praveen]

With gold futures on the Multi Commodity Exchange (MCX) trading strong at above Rs 14,000 per 10 gm levels, the open interest that indicates Investing in gold a safe bet
the trading activity of the investor is also at record levels. This shows that despite gold scaling new highs in the Indian market, most investors are bullish that the yellow metal will rise further.

“Gold has been spurred by the sudden investment demand, with all economies looking very uncertain,” said Subodh Gupta of Anand Rathi Commodities. The gold April contract has seen a record open interest of 20.5 tonne, indicating how bullish investors are about the yellow metal in the next couple of months.

The April contract traded at Rs 14,260 per 10 gm. “One can expect gold to go up even more. Gold has decoupled from both the euro and the dollar and is charting its own path based on its fundamentals,” said Mr Gupta. Both the European Central Bank and Bank of England are expected to cut interest rates, and this could spur gold further, he said.