Gold hits Rs 15,500-level on worsening worldwide recession

Gold prices crossed Rs 15,500-level to an all-time intra-day high of Rs 15,545 but ended at Rs 15,490 on the bullion market here today on safe-haven buying prompted by firm trend in global markets.

Uncertainty in equity shares and worsening worldwide recession boosted the gold prices in the overseas markets as investors preferred to park their funds in this metal as a risk free, a dealer said.

Weakening the value of rupee against the green currency also the another factor for rising the gold prices to this extent.

Spot gold hit a high of $973.50 an ounce and was quoted at $967.35/968.95 an ounce in the European market.

Holding of the world's largest gold-back exchange-traded funds leapt to a record high above 1,000 tonnes on Tuesday as fears of a deepening global recession and proepect of inflation fuelled buying.

Turning to the local market, standard gold (99.5 purity) rallied by Rs 260 per ten grams to Rs 15,490 from yesterday's closing level of Rs 15,230.

Pure gold (99.9 purity) also rose to Rs 15,560 from Rs 15,295 yesterday.

Silver ready (.999 fineness) firmed by Rs 775 per kilo to Rs 23,090 from Rs 22,315 previously.