The Hindu Business Line : Gold scales to new peak

Buoyed by the surge in gold prices to a 18-year-high on the international markets, prices of the precious metal touched all-time highs in Mumbai today.

Standard gold touched Rs 7,265 per 10 gm, higher by Rs 90 from the previous close.

Gold .999 touched Rs 7,305 against the earlier close of Rs 7,210.

Gold prices have moved up Rs 245 this week.

Strong buying by investment funds pushed gold to an 18-year high at $488.20 in London. There are indications that gold is likely to move up to $500 an ounce.

Domestically, the upward movement of gold prices coincides with the wedding season.

India, the largest gold market, consumes the precious metal in the form of jewellery, which is hugely in demand during the wedding and festival season.

According to the World Gold Council, global demand for gold increased seven per cent in tonnage terms and 18 per cent in dollar terms during the third quarter of 2005. Identifiable investment demand was higher by 56 per cent at 118 tonnes.

Indian demand for gold during the three quarters was higher by 37 per cent in 2005 in tonnage terms over the same period earlier year.

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