What a woman desires the most, in terms of jewellery, is gold. What has remained the most trusted currency for years is gold. What is still considered a safe investment is gold. And due to so many reasons, gold is shining like never before!
The rising crude oil prices, touching new record levels, and the plunging dollar has boosted gold prices like never before in world history. Today, gold is available at Rs 13,100 per 10 gram in the bullion market. Silver also trades at its ever highest level of Rs 25,000 per kg and its coins at Rs 27,000 per 100 pieces.Trading activity gathered momentum after crude oil prices rose to a record 100 dollar a barrel and subsequently the dollar fell to its lowest level against the other leading currencies which raised concern of a further rise in inflation and boosted the demand for gold as a safe haven. Market analysts said that fresh inflow of funds from melting stock markets to bullion was an additional factor for the surging gold and silver prices. People believe that the precious metal rising to record high levels in global markets also influenced trading sentiment to some extent.Gold has climbed 19 per cent this year as the dollar fell and world equity markets headed for their worst start since 2001.
On the domestic front, standard gold and ornaments spurted by Rs 220 each to Rs 13,100 and Rs 12,950 per 10 gram respectively. Sovereign also set a record to Rs 10,075 per piece of eight gram. Silver spurted by Rs 1,000 to Rs 25,000 per kg and weekly-based delivery by Rs 1,040 to Rs 26,240 per kg. Silver coins also traded at record high level of Rs 26,900 for buying and Rs 27,000 for selling of 100 pieces.Indian gold struck new highs on Thursday in tandem with foreign markets that touched the psychological $1,000 an ounce, attracting many sellers of old gold to the market. There is selling pressure.
US gold futures hit a record $1,000, while spot gold touched a high of $997.50 an ounce, boosted by a lifetime low dollar against a basket of major international currencies and firm crude oil prices. Traders believe that the sharp gains had frozen demand.Gold futures on the continuation charts of Multi Commodity Exchange of India Ltd (MCE) touched an all-time high of Rs 12,925. Gold prices will remain strong and demand in India, the world’s No.1 consumer of the metal, should stabilize, though record high prices have doused buying for now. Volatile prices had cooled jewellery buying in India but traders hope that demand would pick up as it has in the past when consumers had adjusted to the new price.India buys between 700 and 800 tonnes of the precious metal annually. In January, India’s imports of gold totaled just 24 tonnes, down 72 percent from a year earlier. But, as the wedding season approaching in India, all can expect the demand to increase again. After all, what an Indian bride loves is gold and coincidently, fathers are ready for it at any given price!
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