This Article is From Mar 11, 2013

Gold likely to recover from eight-month low

Gold likely to recover from eight-month low

Gold futures in the country, which hit their lowest level in eight months, are likely to recover from the multi-months low, helped by bargain buying.

The actively traded gold for April delivery on the Multi Commodity Exchange (MCX) was 0.11 per cent higher at Rs 29,378 per 10 grams, after hitting a low of Rs 29,111 last week, a level last seen in mid-July.

"Most negative factors have been priced in. Gold is finding good physical bargain hunting interest at lower levels," said Gnanasekar Thiagarajan, director with Commtrendz Research.

Gold has shed about 5 per cent so far in 2013, weighed by a stronger dollar overseas amid optimism of a bounce back in US economy. Gold acts as an alternative investment to the dollar.

Buying is advised on dips to Rs 29,250, for a target of Rs 29,850, with a stop loss of Rs 29,100.

Silver for May delivery was 0.17 per cent lower at Rs 54,763 per kg.

Copyright @ Thomson Reuters 2013