Gold Revisits its 17k Mark

Gold Revisits its 17k MarkGold futures retouched the psychological Rs 17,000 mark, hitting a three-week high, as a weaker dollar overseas propelled the yellow metal's appeal as an alternative investment, analysts cited.

The US dollar reported its abysmal depth, touching the lowest in six weeks on Friday after US jobs data disappointed. The dollar index fell 0.6 per cent in comparison to other currencies.

The most-traded gold February contract on the Multi Commodity Exchange (MCX) was trading 0.89% higher at Rs. 17,051 per 10 grams at 2:44 pm. It hit an intra-day high of Rs. 17,054, a level last seen on 21 December.

"Euro has gained, and is supporting gold, range for the day would be Rs. 16,900-17,100", said Aurobinda Prasad, head of research, Karvy Comtrade. Also the rupee rose to its highest level since 15 months after a long period of weakness.

The head of the Bombay Bullion Association claimed that India imported 300-350 tons of gold in 2009, higher than the previous estimate of over 200 tons.