The Hindu Business Line : Gold touches Rs 6,000-mark

STANDARD gold prices in Mumbai, a major gold trading centre of the country, touched a psychological level of Rs 6,000 per 10 gram today, reaching at the level as on February 5, 2003, following rising international prices.

Gold .999 fineness' prices were quoted at Rs 6,040 per 10 g, up Rs 5 over the previous working day level. Spot gold price at the overseas market has touched $398.10 an ounce on Friday. Ten-tola gold bars prices crossed Rs 70,000-mark and quoted at Rs 70,500 per unit.

In November, local gold prices had gone up by Rs 200 to Rs 6,000 per 10 g, while gold prices in London market shoot up by $17-18 an ounce, a local dealer said.

"Local demand for primary gold is fairly average. The first round of marriage demand is almost over; and, traders are looking for next round of marriage purchases. Supply was not much improved. Recycled-gold supply into the market was normal. Also, there are reports of old jewellery sale by general public this week," Mr Madhusudan Daga, a leading bullion analyst told Business Line.

"Flow of gold imports has gone down due to price disparity but current inflows of gold are sufficient to cater to the local demand," he added.

Commenting on international trend, Mr Harmesh Arora, a leading dealer-refiner and Vice-President of the Bombay Bullion Association (BBA), said: "I think gold prices in the overseas market may go up to $420 an ounce, if the prices breach the $400 level. Prices have touched $400 recently but did not remain at that level. Once the $400 level is crossed, the prices may go up to $420-425 level."

"Domestic demand for gold is unlikely to come at this point of time as domestic and overseas prices are going up and up. I feel consumers will adopt a wait and watch policy," a leading local bullion trader said.

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