Gold prices were expected to correct amid the stabilizing equity markets but the expectations were shattered by the weak housing start numbers from the US. Yellow metal got formidable supports and rose by $ 5 to close at $ 926.70 per ounce on the Comex division of NYMEX. Weakness in Dollar against the majors aided the rise.
MCX Gold June expiry also gained significantly from the lows. Gold closed at Rs 14321 per 10 grams up Rs 115. The prices were once trading at Rs 13121.
Strong supports at lower levels will benefit Gold prices today as well, and the prices are expected to rise towards Rs 14500 per 10 grams.
The Commerce Department said housing starts fell 12.8 percent to an annual rate of 458,000 units last month, the lowest since records began in January 1959.
