Gold prices on Monday rose above the psychological threshold of $1,600 an ounce in Europe as investors spooked by the eurozone debt crisis and the threat of a US default bought into the metal as a haven from risk. Spot gold rose as high as $1,600.4 an ounce (Rs 22,936 per 10 grams). It rose more than 3% for a second straight week to Friday, the first time since February 2009.
In India, the yellow metal touched a lifetime high of Rs 24,099 for 10 grams at the Multi Commodity Exchange (MCX). It has risen about 6% in the last two weeks.
Prices are expected to rise further during the week as investors are hedging against uncertainty, analysts said. “In all probability Greece would default on its sovereign debt if not injected with more liquidity and some other European countries could follow suit. This has left many investors to turn towards gold as a hedge and this would continue throughout the week,” said Hitesh Jain, commodity analyst, IIFL.