Riding high on fund buying, standard gold prices today hit a new high of Rs 7,475 per 10 gm in domestic market and $499 per ounce in London. Large-scale profit bookings dragged the price down to Rs 7,450 but it perked up again to close at Rs 7,465. | |
| Silver price moved in tandem and closed the day at an all time high of Rs 12,345 per kg. |
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| Harmesh Arora, head, NIBR Bullion and vice-president of the Mumbai Bullion Association said, "The upward momentum would continue because funds are still active in buying the yellow metal. Our analysis says that the gold in the international market would touch $525 per ounce and it could go up to Rs 8,000 per 10 gm in the domestic market by next fortnight." |
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| Dollar and gold, which had a negative correlation earlier, are moving in the same direction now as the yellow metal is fast emerging as an independent investment and not as a hedge against the currency movements. |
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| Globally, hedge funds are seen buying gold and increasing the weightage of commodities in their investment baskets. |
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| "Inflation fears in the US have also helped boost gold to set new records," said Rajesh Mehta, chairman, Rajesh Exports Ltd. According to him, the traders are gradually shifting their investment base from crude and real estate to gold which, they think, is a safe bet. |
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| Russia's Central Bank has said that it was not going to sell any more gold in the market. Miners within the country have been instructed not to release gold in the international market and, thus, they are building their reserves. |
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| Some experts are predicting correction which may bring gold prices down to $475 per ounce again before picking up to touch $525 per ounce. |
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| Domestic players expect gold price to decline to Rs 7000 per 10 gm any time after December. |
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