Gold is trading high on weak global economy

Gold prices continuously vacillating on highs as weak global economy continued to increase its safe haven charm. Moody's downgraded Ireland's credit rating to junk status on Tuesday and Europe is still struggling to come out of debt crisis. All these factors are haunting investors and speculators around the globe.

Speculators are expanding their commodity portfolio with gold in today's trade due to weak global cues. At the Multi-Commodity Exchange, gold futures for August delivery was seen at Rs 22,815 per 10 grams around 2:15 p.m IST.

Gold for immediate delivery was seen at Rs 21,998 per 10 grams.

Similarly, silver futures for September delivery was seen at 54,735 per 1 kg. Rise in gold prices is mostly due to concerns over the Euro zone and Ireland's credit rating junked.

The rating agency warned that Ireland would likely need a second bailout. Last week, it slashed Portugal's rating to junk status with a similar warning.

Investors are also apprehensive that the crisis is spreading from the small euro zone economies onto the larger ones. With such high uncertainty around gold is the best alternative investment during such phase.

OneIndia