The Hindu Business Line : Gold touches new high on sustained demand

GOLD prices touched an all-time high of Rs 6,740 per 10 gram on sustained demand due to ongoing wedding season against steady supply. Strong overseas market also continued to influence the domestic prices.

"Despite rising prices in gold, demand remained firm due to strong buying from consumers and farmers as well. Some quick buying was reported today as overseas markets will remained closed for the next three days due to Thanksgiving holidays," Mr Bhargav Vaidya, analyst said.

In Mumbai, pure gold (.999 fineness) has gone up 4.25 per cent or Rs 275 at 6,740 per 10 gm in the current month. Similarly, silver .999 fineness also moved up by 4.1 per cent or Rs 480 per kg at Rs 12,140 per kg.

"Overall supply and stocks-with-banks are well enough to cater the domestic demand. Fresh buying in gold by farmers have now started in the rural areas thanks to good monsoon," he said.

"I think wedding season demand for gold will continue until December. Demand for silver has come down in last few days. Daily inflows of gold and silver have maintained around 350-450 kg," Mr Suresh Hundia, a leading bullion dealer and ex-president of the Bombay Bullion Association (BBA) said.

"I believe correction is due and market see correction on next Monday. Gold may move around $450-460 in the next few days," Mr Vaidya said.