Gold surges to record high

Gold prices rose today to an all-time high of Rs 14,375 per 10 gm in Kolkata on frantic buying following a steep rise in prices due to rising concerns over the faltering world economy.

The rally in the domestic market was led by Kolkata, where the metal surged by Rs 470 to close at Rs 14,375 per 10 gm. In Delhi, the precious metal scaled a new peak of Rs 14,100, a gain of Rs 400, while it rose by Rs 310 to close at Rs 14,075 in Mumbai. In Chennai, it rose by Rs 365 to Rs 13,900.

The upsurge in gold prices surpassed last records set on October 10 last year, when the metal in domestic markets traded at around Rs 14,000.

Trading volumes picked up after reports of the metal rising to a three-month high, climbing past $900 an ounce in both New York and London for the first time since October, as global equity markets tumbled, boosting demand for a safe harbour, marketmen said.

In the last one week, Europe’s Dow Jones Stoxx 600 Index slumped as much as 2.6 per cent to the lowest since April 2003, Tokyo’s Nikkei 225 sank 3.8 per cent and the MSCI World Index slid 4.1 per cent. It left no other option for investors but to park their funds in bullion, considering it to be a safe haven.

Gold futures for February delivery climbed $37 to $895.80 an ounce on the Comex division of the New York Mercantile Exchange, the biggest gain since December 10.

A steep rise in the commodity markets led by crude oil and copper also supported the trading sentiment in the world bullion markets.