Gold, silver at new highs

Our Bureau Chennai | Updated on April 12, 2011

Gold bars on display at a showroom. (file photo)

Gold chart

Gold zoomed to a new high in the global market and silver hit a 31-year high of $40 an ounce as concerns over inflation and Europe debt returned to haunt investors on Friday. The dollar's fall against six major currencies aided the bullish trend in precious metals.

In India, silver crossed Rs 60,000 a kg in Mumbai to Rs 60,125, up over 1,045 from Thursday. Standard gold surged to Rs 21,090 for 10 gm, just short of its March 7 record high of Rs 21,125.

The yellow metal surged to a record Rs 21,275 for June contracts on the Multi Commodity Exchange, while hitting Rs 22,000 for December contracts.

Late in the evening, gold was quoted at $1,470.29 an ounce in London after having hit a record $1,474.50. Silver was quoted at $40.34 an ounce. The European Central Bank on Thursday lifted interest rates for the first time in almost three years to tackle inflation but Portugal sought a bailout.

A rise in the rupee has kept gold on leash. Silver has scaled new peak mainly on buying for the wedding season.

A GFMS report which said that monetary policy is unlikely to be tightened much in 2011 and inflation and sovereign debt concerns will most probably grow further, supported the bullish trend.

The London-based research body forecast that silver could soon visit $50, a mark it hit in January 1980, on a strong probability that gold will climb above $1,600 an ounce.

Published on April 08, 2011

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