Standard gold prices on Wednesday touched a new high of Rs 12,015 in Mumbai on some fresh buying interest in view of weakness in rupee value against US dollar supported by rising prices of crude oil in the international markets.
In other major centres, gold spot in Ahmedabad was higher by Rs 185 to trade at Rs 12,000 per 10 gram on continued buying enquiries and spot gold in New Delhi also rose by Rs 150 to quote at Rs 12,040 per 10 gram over previous day. On the MCX platform, gold extended-October 2008 contracts were also up and prices were quoted at Rs 12,014 per 10 gram on limited buying interest.
“Demand for gold at the retail level is considerably low but dealers have witnessed some selling in gold scrap to buy new gold,” a local dealer said.
Thanks to firm US dollar value against rupee, landing cost of gold imports has gone up, he said. Rupee was weaker at Rs 40.17 per dollar on Wednesday.
In the International markets, gold April contracts rose by $23.70 to $929.80 an ounce on the Comex division of the NYMEX amid stronger crude oil, a trader said.
Expected rate cut in the US fed has been fuelling gold price upward, sources said.
China posted a 20% growth in gold jewellery sales in the last quarter of 2007. Overtaking the US, China has become the world’s second largest market for gold jewellery and the sales of the yellow metal in the country reached a record 302.2 tonne, second only to India. China has become the world’s second largest market for gold jewellery, the World Gold Council report said.