Gold topped fresh highs of 1535 per ounce today before easing slightly but the undertone remained bullish.
The commodity had gained sharply yesterday after the US Fed kept their benchmark interest rates at 0% as expected and Fed chief Bernanke said he didn't know when the Fed would tighten interest rates during the press conference.
The Fed also hiked its 2011 inflation view to a level between 2.1% and 2.8% — implicitly acknowledging that prices are running faster than the 1.7% to 2% range the Fed considers projected earlier.
This had pulled gold to a record close of $1,517.10 an ounce, up $13.60 on the Comex division of the New York Mercantile Exchange yesterday and pushed it up again today as the dollar continued its overwhelming downturn, falling to fresh 16 month lows of almost 1.4900 against the Euro.
Meanwhile, the World Gold Council (WGC) stated that gold is providing an alternative to hedge the growing concern over global inflation in a way that is not easily replicated by other assets. The WGC unveiled these thoughts in its Q1 2011 Gold Investment Digest report. Long term, upward trajectory of gold price sustained through first quarter of 2011 and lower volatility and dollar weakness increased investment and jewellery demand in key markets, the council noted.
The WGC also stated that despite an initial pullback of the gold price in January, positive investor sentiment towards gold and greater confidence in the timing of jewellery purchases contributed to a strong quarterly performance, prompting gold to reach new all-time highs in early April - and ultimately leading it to breach the $1,500/oz mark.
The futures drifted lower from highs of 1535.10 per ounce and currently trade at $1530.50, up $13.40 per ounce as some intraday profit selling emerged. The US GDP for first quarter of 2011 is on the tap today and a wild upmove could not be overruled in the yellow metal if the report prints less than expected forecast of 1.7%.
MCX Gold futures for June hit a high of Rs 22278 per 10 grams today, rallying further after adding nearly Rs 250 in the previous session. The contract currently trades at Rs 22240, up Rs 110 or 0.50% on the day and could find a support around Rs 22200 mark.
The commodity had gained sharply yesterday after the US Fed kept their benchmark interest rates at 0% as expected and Fed chief Bernanke said he didn't know when the Fed would tighten interest rates during the press conference.
The Fed also hiked its 2011 inflation view to a level between 2.1% and 2.8% — implicitly acknowledging that prices are running faster than the 1.7% to 2% range the Fed considers projected earlier.
This had pulled gold to a record close of $1,517.10 an ounce, up $13.60 on the Comex division of the New York Mercantile Exchange yesterday and pushed it up again today as the dollar continued its overwhelming downturn, falling to fresh 16 month lows of almost 1.4900 against the Euro.
Meanwhile, the World Gold Council (WGC) stated that gold is providing an alternative to hedge the growing concern over global inflation in a way that is not easily replicated by other assets. The WGC unveiled these thoughts in its Q1 2011 Gold Investment Digest report. Long term, upward trajectory of gold price sustained through first quarter of 2011 and lower volatility and dollar weakness increased investment and jewellery demand in key markets, the council noted.
The WGC also stated that despite an initial pullback of the gold price in January, positive investor sentiment towards gold and greater confidence in the timing of jewellery purchases contributed to a strong quarterly performance, prompting gold to reach new all-time highs in early April - and ultimately leading it to breach the $1,500/oz mark.
The futures drifted lower from highs of 1535.10 per ounce and currently trade at $1530.50, up $13.40 per ounce as some intraday profit selling emerged. The US GDP for first quarter of 2011 is on the tap today and a wild upmove could not be overruled in the yellow metal if the report prints less than expected forecast of 1.7%.
MCX Gold futures for June hit a high of Rs 22278 per 10 grams today, rallying further after adding nearly Rs 250 in the previous session. The contract currently trades at Rs 22240, up Rs 110 or 0.50% on the day and could find a support around Rs 22200 mark.
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