Gold, silver inches up on global cues

Gold, silver futures inched up on Wednesday tracking firm global cues which were supported by central bank measures.

However, dollar strengthening against major currencies, lingering eurozone crises weighed on the yellow metal.

Gold sentiment was also boosted after the International Monetary Fund (IMF) said that the central banks hiked their holding of the yellow metal in both July and August. International gold was seen hovering at $ 1,763 an ounce.

Gold futures at the MCX, for October 2012 contract, was trading at Rs 31,463 per 10 gram, higher by 0.20%. The metal opened at Rs. 31,429 against the previous closing price of Rs. 31,400.

MCX silver futures rose by Rs 110 per kg, and was trading at Rs 62,424 per kg. Spot silver on MCX was trading at Rs 60,914 per kg.

Spot bullion on the MCX was seen lower at Rs 31,525 per 10 grams, while Delhi spot gold of 99.9% and 99.5% purity was at Rs 32,100 and Rs 31,900 per 10 grams, respectively.

Gold rose as speculators enlarged their positions, tracking firm global trend. In this low interest rate regime gold is expected to attract more investors, as it is considered hedge against inflation.

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