Gold reverses its previous day’s losses; gains on weak dollar

Gold prices reversed its previous day’s losses, rising by 0.31 per cent on Tuesday at the domestic markets as weaker greenback makes the gold cheaper for those holding other currencies, thus increasing demand. The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.08 per cent lower at 80.719 on the Inter-Continental Exchange (ICE).Gold futures for August 2013 contract, at MCX, were trading at Rs. 27,956 per 10 grams, up by 0.31 per cent after opening at Rs. 27,941 against the previous closing price of Rs. 27,869. It touched the intra-day high of Rs. 28,057 till the trading. Moreover, a pickup in physical demand for the precious metal in the domestic spot market due to the ongoing marriage season also supported prices. At the Commodity Exchange (COMEX), gold future for August 2013 delivery traded at US$1,381.9 per ounce, down by 0.09 per cent. It opened at US$1,384.3 against the previous closing price of US$1,383.1. It touched the intra-day low of US$1,381.3.