New Delhi, Oct. 10: With meltdown in stock markets driving investors towards bullion, gold prices are likely to touch Rs 15,000 per 10 gram by Diwali, say analysts.
Gold prices on Friday reached an all-time high of Rs 14,200 per 10 gram in the Delhi bullion and analysts said the trend is likely to continue in the coming days.
"We see domestic gold prices cross Rs 15,000 per ten gram before Diwali after gauging the current financial situation both in global and domestic market," said Religare Commodities Business head, Mr Jayant Manglik.
In India, depreciation in rupee against the US dollar has led gold reach an all-time high on Friday despite gold trading at about 12 per cent below its peak in dollar terms, adding that lack of investment avenues has led to some serious investment in gold worldwide and this demand is helping push prices up.
Kotak Commodities Associate vice-president, Mr Si Kannan said, "Yellow metal prices would surge in the range of Rs 14,500-15,000 by Diwali."
"The combination of factors have contributed to the rise in gold prices. However, the financial crisis is keeping gold as a safest haven for investment as compared to equity, bonds and other assets," he added.
Experts said investors are buying gold, a traditional safe-haven asset, following fears of deepening global financial crisis sent the domestic stock market tumble in early morning session. The Bombay Stock Exchange fell over 1,000 points. At the MCX counter, the most-active December contract rose by 3.98 per cent at Rs 14,147 per ten gram, while February 2009 by 3.87 per cent at Rs 14,214 per ten gram.
The October contract at NCDEX,jumped by 3.47 per cent at Rs 14,004 per 10 gm and November contract gained 3.64 per cent at Rs 14,085 per 10 gm. — PTI
