Gold bounces back from 6-month low

Gold bounced back on Monday after hitting a 6- month low on Friday as low prices attracted gold investors. Physical buying picked up in China after the Lunar New year Holiday. However, firmness in dollar could hurt gold sentiment.

On Friday, the precious metal dropped 3.4% on worries over US economy which dimmed the safe haven appeal as investors rushed to equities. International gold was seen trading at $1,615 an ounce.

At the MCX, Gold futures, for the April 2013 contract, was trading at Rs 30,220 per 10 gram at 2.00 pm IST.

As on February 18, gold prices for 99.9% in major cities were prevailing around Rs 30,200 in Mumbai, Rs 30,340 in Ahmadabad, Chennai spot gold was seen at Rs 30,370 per 10 grams and Delhi spot gold was seen highest at Rs 30,415 per 10 grams.

Recent declines in the precious metal may attract buyers of India, who waited long for the prices to come down.

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