Gold touches new high

Written by Commodities Bureau | Agencies | Mumbai, Oct 8 | Updated: Oct 9 2008, 06:22am hrs
Standard gold prices in Mumbai on Wednesday rallied to an all-time high of Rs 13,745 per ten gram on fresh buying prompted by firm global markets as well as festival demand, a local trader said.

In the domestic bullion market, standard gold (99.5 fineness) firmed up by Rs 275 per ten gram to trade at Rs 13,745 from the Tuesday's closing level of Rs 13,470 and pure gold (99.9 purity) also hardened to Rs 13,810 from Rs 13,535 per 10 gram. Silver ready (.999 fineness) also jumped to Rs 19,940 from Rs 19,685 on Tuesday.

In New Delhi, gold prices also zoomed to an all-time high of Rs 13,850 per 10 gram as plunging stock markets and deepening global financial crisis spurred demand for the metal as a safe hedge. The gold jumped by Rs 450 to Rs 13,850 per 10 gram. It had risen to Rs 13,650 on July 15.

Investors, who burnt their fingers in the equities and commodities, rushed toward the precious metal to hedge risks, pushing prices higher, sources said.

They said the rise in physical demand for marriage and festival season was another factor that served as a boost for gold.

In Singapore, gold prices rebounded as safe-haven buying picked up after share values tumbled to multi-year lows across the globe. Heavy demand from the world's largest bullion-backed exchange-traded fund (ETF) also boosted the sentiment.

In London, gold jumped up by $15.43 to $902.53 an ounce, exceeding $900 for the first time this month, as a firming US currency made the dollar-denominated precious metal more costly.

Battered financial markets received another jolt as the International Monetary Fund (IMF) cut its forecast for global growth next year to 3% from 3.7%.

Traders said the gold became a safer investment option and more dear among small and big investors as the market witnessed more funds shifting from stock and forex to bullion market.