It was a golden day for the yellow metal on Thursday as it broke all previous records to touch Rs 32,300 for 10 grams in the spot market while April 2013 futures hit a new high of Rs 32,758. Festive and wedding season demand besides global cues and investor expectations of a surge drove prices north.
Gold prices touched new highs on expectations that the European Central Bank (ECB) would announce the purchase of Spanish and Italian bonds.The price has increased by Rs 1,555 for 10 grams in the last 15 days. India is a major importer of gold and global trends in pricing directly impact domestic prices. In the first quarter (April-June 2012), gold demand was 181 tonnes, of which 131 tonnes were imported, the World Gold Council (WGC) said.
Industry experts are also expecting a stimulus package by the US government to boost the economy. This could devalue the dollar and push up gold prices further. Also, investors are turning to gold as economies slow down and other asset classes show poorer returns.
“Holdings of gold exchange traded funds gained to their hig-hest level since mid-March, while physical demand from Asia stays steady,” said Hareesh V, analyst, Geojit Comtrade.
In India, analysts predict incr-eased demand for gold due to the festive season. Many consumers will buy gold as the wedding season approaches. How-ever, demand in India fell 39% in April-June, the WGC said.