Mar 22, 2008

Gold surges to Rs 13,560 on strong global cues

Gold prices on March 17 reached its new peak of Rs 13,560 in the bullion market in New Delhi on brisk buying by stockists, sparked by strong global cues. A turmoil in all financial markets after all dollar-denominated commodities turned volatile by setting high and low record levels, diverted investors to park their funds in gold, considering it to be a safe investment during such crisis, traders said. The precious metal set record high peaks in all local as well as world bullion markets.

A remarkable rise in crude oil prices, weakening dollar, restricted inflow of foreign investors in emerging Asian stock markets left with no other option but to invest in gold, which surged to an all-time high of $1033 an ounce in overseas markets. Standard gold and ornaments registered hefty gains of Rs 360 each to Rs 13,560 and Rs 13,410 per ten grams respectively. Sovereign joined the rally and set an all-time high level of Rs 10,350 per piece of eight gram by adding Rs 200. In a similar fashion, silver ready attracted heavy stockists and industrial units buying after reports that it touched a 28-year high level in overseas markets. Silver ready rallied by Rs 1,050 to Rs 25,800 per kg and weekly-based delivery by Rs 620 to Rs 27,360 per kg. Silver coins too remained in keen demand and advanced by Rs 400 to Rs 27,300 for buying and Rs 27,400 for selling of 100 coins.