Gold continued with its record setting spree, climbing to a new peak of Rs 18,810 per ten grams in the national capital today on frantic buying for the ongoing marriage season amid a firming global trend.
The precious metal, which has been on an upward swing since last two weeks, shot up by Rs 240 to Rs 31,850 per 10 grams in the national capital region, surpassing previous record of Rs 31,725 set on September 1.
Overall trade with China grew by about 66 per cent during the period, raising hopes of achieving the trade target of $60 billion this year.
Traders said some demand for the festive season mainly supported the rise in prices of both the precious metals.
Industry representatives say the government may be tempted to raise the duty on gold and silver by Rs 100 per 10 gram and Rs 500 per kg, respectively, to earn extra revenue at a time the economy is facing several challenges.
The past year saw some spectacular rallies in silver with prices rising 80 per cent on perception of it being a store of value, continuing shrinkage of above-ground refined silver and demand staying ahead of supply.
As the stock markets scale new peaks almost every day in a pre-poll rally, a vast majority of Indian investors expect a further rise in equities in the current year, says a survey.
Traders said besides increased offtake by jewellers, both precious metals improved on some buying by investors who shifted their money from easing equities to the bullion.
As global markets near all-time highs driven by liquidity, Marc Faber suggests most asset prices worldwide are inflated.
Gold futures for February delivery closed at in the red on weekly basis after reaching a record $1,432.50 an ounce on December 7. This week, the gold dropped 1.51 per cent or $21.30, the most since mid-November on concern that China may tighten monetary policy eroded demand for precious metals.
Gold also moved up by Rs 70 to Rs 20,430 per 10 grams on rising jewellery demand, reaching nearer to its record level of Rs 20,600 per 10 grams set on November 11.
A weak trend was noticed in Mumbai, as gold of 99.9 and 99.5 per cent purity slipped by Rs 60 each to Rs 30,540 and Rs 30,390 per ten gram respectively, while silver lost Rs 200 at Rs 45,600 per kg.
Continuing on its record-setting spree, gold gained another Rs 133 to yet another high of Rs 19,833 per ten grams in futures trade today after the precious metal soared to an all-time high overseas.
Gold prices will rise next year as the financial crisis pushes more investors into the precious metal safe haven, according to delegates polled on Tuesday during the London Bullion Market Association annual meeting in Kyoto.
After surging to Rs 16,220 level in September, gold prices slightly eased at a time when festival and marriage season is about to pick up.
Reliance Money, investment product distribution arm of Anil Dhirubhai Ambani Group, is foraying into retailing of its own brand of gold coins, which would be made exclusively by Swiss precious metal refining major Valcambi.
Amid volatility in equity markets, gold prices may touch a record level of Rs 20,000 per 10 grams in the near future with traders preferring to park their money in safe havens such as the precious metal, analysts said.
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Gold is back in favour with consumers shifting their focus on the precious metal on the back of moderation in prices.
In the first phase the yellow metal sold in four metro-Delhi Mumbai Kolkata and Chennai would compulsorily have hallmarking, assuring the purity, while the rest of the country would have to implement the norms in the next few months.India consumes on an average 800 tonnes of gold each year.
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Attributing the high Current Account Deficit to mainly gold import, Chidambaram said the inward shipments of the precious metal resulted in outgo of $50 billion.
The IMF, in pursuance of the decisions taken at the G-20 summit in London, had decided to sell about 403.3 tonnes of gold to shore up its finances so that it can lend money to the poor countries at concessional rates.
Gold prices in the national capital touched a peak of Rs 16,250 per 10 grams before Diwali, on October 14, from Rs 15,370 in the beginning of September. The prices are ruling at Rs 16,175 per 10 grams on Friday.
The prices of gold last year on the Dhanteras day ruled at Rs 12,070 per 10 gram.
Gold on Monday fell by Rs 50 at Rs 16,020 per 10 gram in the bullion market on selling by stockists, sparked by a weakening global trend.
Last week, gold achieved a new peak at Rs 16,100 per 10 grams, after the precious metal in the overseas markets surged to $1,003 an ounce to a six-month high as a weaker dollar boost its appeal as an alternative investment. With most of the asset classes giving positive returns, investment demand for gold is rising, she said, adding, there has been a net inflow of about Rs 80 crore (Rs 800 million) in the last three months (June-August).
The precious metal spurted by Rs 270 at Rs 15,700 per 10 gram, a level last seen on February 18.
Trading sentiments turned bearish after gold shed 0.4 per cent to $1,529.85 an once from $1,540.78 on Tuesday, the highest level since May 4, in the global markets, as investor concern eased that Greece may become the first euro country to default, paring demand for the precious metal as a haven.
The demand for the precious metal declined as the prices hovered between Rs 14,500 to Rs 15,000 per 10 grams level in the domestic markets, Bombay Bullion Association president Suresh Hundia told PTI from Mumbai. Multi Commodity Exchange October gold was ruling at Rs 14,865 per 10 grams on Monday, while in global markets it was at $935.8 an ounce (28.34 grams).
With a robust outlook for mineral-led growth in India, Anil Agarwal-led Vedanta Limited is looking to invest up to $20 billion across its businesses, which includes doubling of silver production and steel capacities. In a virtual press conference had last month, Agarwal said the company planned a capex of $5 billion over a period of three years. The company has not given a timeline for $20-billion investment.
Gold declined by Rs 190 to Rs 31,950 per 10 grams in the bullion market in New Delhi on Monday, while silver lost Rs 800 to Rs 60,400 per kg on subdued demand at higher levels.
Extending gains for the fifth day in a row, gold prices surged to a 52-week high here at Rs 15,000 per ten gram on aggressive buying by funds in line with firming overseas trend.
The London-based global precious metals consultancy firm, however, warned that the rally may not be straight as a summer lull or the need for inflationary pressures to build could result in a period of sub-$900 prices in the short term.
Gold import stood at 18 tonnes in May, according to the data provided by the Bombay Bullion Association. Gold prices ruled over Rs 14,600 per 10 grams level in both spot and futures markets last week. In the international markets gold prices were at 938.55 an ounce (28.34 grams).
Silver also jumped by Rs 1,000 to Rs 57,000 per kg on strong global cues.
Buying had been muted in the past few weeks.
Gold prices on Wednesday jumped to all-time high of Rs 30,420 per 10 grams in the bullion market here on the back of soaring demand ahead of the wedding season amid firming trends in global markets.
At present, it is trading at around $1,004 an ounce in the international market, about $150 cheaper than gold
