Gold rates at a record Rs 19050
Gold prices soared past Rs 19,000 per 10 grams for the first time ever to touch an all-time high of Rs 19,050 as the Euro-zone crisis saw investors rushing for the 'safe' yellow metal. The appreciation of the dollar against the rupee too is contributing to the spurt in local gold prices.
Silver, too, is on the rise, with the price surging by Rs 200 to Rs 29,800 per kg on Tuesday. Silver, too, is on the rise, with the price surging by Rs 200 to Rs 29,800 per kg on Tuesday.
In international markets, gold prices surged for the seventh straight day, crossing $1,225 per ounce on Tuesday, against Monday's close of $1214 per ounce in the New York Market. Gold has gained 8.3% over the past two months and reached a record level of 1,249.40 per ounce on May 14. It dipped after that on hopes that the Greek crisis may have been contained.
But later, it again spurted as news of other Euro-zone countries going through economic crisis started filtering in.
During the same period, the rupee also depreciated around 4% against the dollar. Therefore, the combined effect of the rise in gold price in dollar terms and the appreciation of the dollar against the rupee has made gold appreciate around 12% in the last two months.
According to World Gold Council, the yellow metal has given a return of 6.88% in the last one month, 22% in the past year and 208% in the last five years.
The demand for gold is still strong in the Indian market because of the ongoing marriage season, said a senior gold analyst. In the international market, the bullish trend in gold is expected to continue till the Euro-zone crisis is resolved. Analysts are predicting that gold prices could cross the previous high of $12,49 per ounce, in which case its price in India could surge past Rs 20,000.