MUMBAI: Indian gold markets also responded to the global trend and the prices moved up rapidly this week with the Mumbai bullion market witnessing huge rise in gold prices, which hit Rs 11,890 per 10 gm.
Even though the yellow metal was expected to hit new heights, this week’s rise was mainly due to South Africa supply concerns, US financial turmoil and a depreciating dollar.
Standard gold in Mumbai rose by Rs 105 to hit a fresh high of Rs 11,890 per 10 gm while pure gold surged by Rs 100 to touch Rs 11,940 per 10 gm.
If one adds the 1 per cent value addition tax (VAT), the price crossed the psychological barrier of Rs 12,050 per 10 gm for the first time in India.
According to reports from London, the yellow metal zoomed to $937 per ounce, a historic high. The global trend is because of concerns over US economic recovery after the 50 basis point Fed cut on Thursday.
According to analysts, investors, hit by a slump in stock markets, are trying to grab as much yellow metal as possible. They hope for a huge return in gold following the Gold Field Minerals Services’ (GFMS) projection that the gold price is to hit $1000 an ounce this year.
An analyst said the present price escalation in gold is purely driven by the economy. Hence, there is little chance that it could come down drastically, given that the fundamentals remain unchanged.
Gold rose by more than 30 per cent in 2007, its biggest annual gain since 1979.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment