| Gold tracked the trend in the global markets and recorded substantial gains in the domestic markets too. Gold 99.5 and 99.9 rose to Rs 6,770 per 10 gm and Rs 6,805, respectively, by Friday - registering a Rs 155 gain from Monday’s prices.
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| A few corrections apart, the support for the yellow metal form the global markets has been uninterrupted and perhaps the first time in history. It has been successful in attracting customers across the globe.
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| Gold in Hong Kong perked up $3.50 on Friday to $473.75 per ounce (oz). In London, it gained in the early trades but closed at $470.50 per ounce registering a loss of $1.05 due to profit booking.
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| The metal, which languished near $250 an ounce in 2001, touched $476.30 last month - its highest since the 1987 stock market crash.
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| “Retailers sell gold at Rs 7,000 per 10 gm in rural areas. This means a consumer who buy not less than 10 kg of gold has to pay Rs 7,000 per 10 gm,” Harmesh Arora, vice-president, Bombay Bullion Association, and head, NIBR Bullion, said. Fundamentals indicate a further rise, he added. “Generally, festival demand in the country starts after the shraadh paksha. But this year, the prices have already peaked. Therefore, the prices will remain conservative,” he said.
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| “The current price in the domestic market could be at a two decade high. Therefore, a minor correction could happen on Monday or Tuesday,” said Bhargav Baid, proprietor, B N Vaidya and Associates.
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| “In the international market too, a correction in the range of $10 will take place before it hits the $480 level,” he said.
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| Meanwhile, domestically trading in gold has declined dramatically. After touching an all-time high at Rs 2,208 crore last Monday on Multi Commodity Exchange (MCX), on Friday the turnover dropped to Rs 481.06 crore.
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| Within a week, total volume also came down to 7,100 kg from 32,867 kg on Monday. Prices of gold futures on MCX is ranging between Rs 6,770 and Rs 6,800 per 10 gm.
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| On the National Commodity and Derivatives Exchange (Ncdex), gold futures gained Rs 35 across all sections and closed higher at Rs 6,755 (October), Rs 6,763 (November) and Rs 6,752 (December). The aggregate quantity of trades on the bourse was 1,271 kg for October, 1,222 kg for November and 650 kg for December.
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| Meanwhile, gold prices in the international markets are expected to touch $500 an ounce later this year, which could be a prelude to a run at $600/oz in 2006.
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| Profit taking pushed down gold futures in New York on Friday. December gold settled with a loss of $3.50 to $472.30. Being the end of a quarter, traders wanted to maintain their book position. Those who manage healthy book position sold extra gold for starting afresh on Monday. Therefore, the commodity lost its glory towards the end of the day, indicating a new start for booking this week.
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| In Asian markets, spot gold closed higher on the Shanghai Gold Exchange on Friday as a continuous rise in global gold spurred fresh buying by commercial banks. Shanghai’s benchmark bullion of 99.95 per cent purity rose 0.63 yen to close at 122.03 yens per gram ($468.99 a troy ounce).
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| The 99.9 variety gained 0.04 yen per gram to end the week at 121.84 yens per gram ($468.26 per troy ounce). Trading volume on Friday also moved up from 1,542 kg on Thursday to 1,851 kg on Friday. |
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