RBI's gold buying pushes price to record Rs 16,800
Gold touched a record high of Rs 16,800 per 10 gram in the bullion market on Wednesday amidst reports of massive gold buying by the Reserve Bank from the International Monetary Fund.business Updated: Nov 04, 2009 17:39 IST
Gold touched a record high of Rs 16,800 per 10 gram in the bullion market on Wednesday amidst reports of massive gold buying by the Reserve Bank from the International Monetary Fund.
Marketmen said the rising trend was boosted after reports that the precious metal in overseas markets reached an all-time high of USD 1,092.40 an ounce after the Reserve Bank of India bought 200 metric tons of gold from the International Monetary Fund, raising speculation more countries will follow suit.
The precious metal, which is on a rising spree for the last few days backed by seasonal demand and a firming global trend, added another Rs 330 to Rs 16,800 per 10 gram.
Trading sentiment also boosted after a London-based bullion group said the metal might climb to USD 1,181 an ounce by September next year.
The London Bullion Market Association survey conducted at the association's annual conference in Edinburgh said silver might also rise to USD 18.10 an ounce.
Marketmen said the domestic bullion market is more co-related to international trend than any positive factor at home.
Besides, the demand was higher for the ongoing marriage season, they said.