Gold: Yet another record high, zooms to Rs 31,468 in futures | business | Hindustan Times
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Gold: Yet another record high, zooms to Rs 31,468 in futures

business Updated: Aug 27, 2012 22:46 IST
HT Correspondent
gold market

Gold prices on Monday touched yet another record high in in the domestic market at Rs 31,468 for 10 grams on monetary easing hopes by the US Federal Reserve.

Last Thursday, the yellow metal had crossed the Rs 31,000 mark in the domestic market on weak rupee and international cues. Industry experts are of the view that an expectation of a stimulus package in the Europe and the US is leading to the rise in gold prices.

"During the economic downturn when investors shy away from riskier assets, they prefer to invest in gold as a hedging tool This is one of the key reasons for its positive returns," said Tapan Trivedi, senior research analyst, JRG wealth management.

Gold has given the third highest returns in the last one month amongst all commodities, according to a report by Geojit Comtrade. According to the report, gold prices have jumped by around 5% in the last one month. This is the third highest return after crude oil at around 12% and silver at around 10%.

The report states the coming week is very important, as it would see some events that could impact the gold price movement. "Jackson Hole summit on August 31 where the Federal Reserve chairman Ben Bernake will outline the case for further central bank action to shore up sluggish economy," the report said. Also, the US consumer data would be out in the week, impacting gold prices.

Going forward, say analysts, the gold prices are not depended on the fundamentals but on the international events.

In the international market, spot gold rose to $1,676.5 an ounce, its highest in more than four months, before giving up some gains to trade at $1,674.4 per ounce on Monday.