Gold, silver at new highs
Both the precious metals sparkled on the bullion market in Mumbai today with gold crossing the Rs 20,700-level and silver breaking Rs 44,000-mark in early trade on hectic buying from stockists triggered by sharp rise in the global market.business Updated: Dec 01, 2010 22:33 IST
The prevailing uncertainty worldwide on account of the European debt crisis and tiff between North and South Korea have infused fresh buying of the precious metal. Gold prices touched their all-time high of Rs 20,615 per ten grams (gold standard in Mumbai) and Rs 20,910 (in Delhi) in the Indian markets on Wednesday as buying continued in search of a safe haven.
The prices of 99.9% purity gold crossed the all-time high level of Rs 21,000 per 10 grams in the national capital, with demand from jewellers drastically picking up amid a busy marriage season.
Silver, also used in jewellery, spurted to the record high-level of Rs 43,950 per kg, as demand from industrial units and coin makers went up.
“There is greater uncertainty around and investors are not investing in dollars which is leading the money to flow in gold,” said Jamal Mecklai, CEO, Mecklai Financial Services.
If experts are to be believed, gold which already getting out of reach of the common man, is set to see a further rise in its prices. “Historically the fourth quarter is the season in the West for gold demand. This combined with the nervousness in the economy at global level and the weakening of the rupee has resulted to the same,” said Ajay Mitra, managing director, World Gold Council. “The strength in the prices is likely to continue.”
While there is a meeting of European Union central bankers on Thursday on the ongoing debt crisis, the market is expecting that they will decide on printing more euros.
“The anticipation of monetising measures by the central bankers in Europe to counter the crisis is leading to more buying of gold for safety,” said Ritesh Jain, head of fixed income at Canara Robeco Mutual Fund. Gold scales