GOLDL REBOUNDS IN FUTURES TRADE

After hitting over 21-month low, gold prices rose over 1 per cent to Rs 25,906 per ten grams in futures trade today as speculators covered their short positions after it recovered partially in the global market. At the Multi Commodity Exchange, the most-active delivery in June contracts traded Rs 272, or 1.06 per cent higher at Rs 25,906 per ten gram after touching a low of Rs 25,270 in early trade, a level last seen in August 2011. It clocked a turnover of 42,553 lots. On similar lines, the metal for delivery in far-month August reversed initial losses to trade Rs 229, or 0.88 per cent, to Rs 26,330 per 10 gm in 1,245 lots. Market analysts said recovery in the global markets, as investors feel the fall was overdone and covering-up of short positions by speculators at prevailing levels, helped gold recover from 21-month low at futures trade here. Globally, gold recovered by USD 29.80, or 2.20 per cent to USD 1,382.40 per ounce in early trade in London. Meanwhile, the metal had lost 14 per cent in the previous two days.