MCX Bullions Tips : Gold stands stall amidst stock rout on 24 August.

MCX Bullions Tips : The yellow metal continued its impressive rally, advancing by more than 1.4 per cent in the domestic market on Friday as panic stricken investors worried about the health of the global economy sought shelter in the safety of the bullion.

Wall Street plummeted to a four-year low while stocks in Asia headed for their worst showing in two years as a Chinese factory gauge sank the most in 77 months, signaling a worsening slowdown in the world’s second biggest economy.

Global stocks have shed more than USD 3.3 trillion of their value since China’s shocking devaluation moves earlier this month, boosting the safe haven demand for the yellow metal.

The dollar’s plunge added more bite to the Gold rally by boosting demand for the precious metal as an alternative asset. Weaker dollar makes Gold cheaper for those holding other currencies, thus bolstering demand.

Gold also benefited from fast rising expectations of a delayed Fed rate hike given the turbulence in financial markets, China slowdown jitters, slowing global growth and muted inflation, bolstering its lure as a store of value.

Gold may extend a charge today as global stocks take a further pounding, bolstering the safe haven demand for the bullion.

At the MCX, Gold futures for October 2015 contract closed at Rs 27,239 per 10 gram, up by 1.45 per cent after opening at Rs 27,145, against the previous closing price of Rs 26,849. It touched the intra-day high of Rs 27,330.