Gold price rises in India with little demand for the physical metal

Gold ETFs, sovereign bonds drive yellow metal to new high of Rs 48,380 despite little demand

Amid the gloomy economic situation, the price of gold surged to a new record in the domestic market and hit an eight-year high internationally. While in Mumbai’s Zaveri Bazaar, 995 purity gold or standard gold closed at Rs 48,380 per 10 gram, up around 1 per cent, in the international market, spot gold quoted a price of $1,777 per ounce, the highest since October 2012. 

Financial investors are buying gold as a safe haven asset because of the rising global economic risk. Gold exchange-traded funds (ETFs) and sovereign gold bonds, both securitised forms of gold investment, are acting as the driver