Gold may hit Rs 15,000 per 10 gm before Diwali on safe haven buying by global investors and continuous depreciation in the rupee against the dollar. This may spoil the festive mood across the country as many people invest in the yellow metal during the festivals.
The precious metal jumped to an all-time high in local market on firm guidance from the overseas market and rupee depreciating to lifetime low because of liquidity crisis in global financial markets. Safe haven buying continued throughout the day globally that took the yellow metal to an intraday high of $929.80 an ounce in early London trade.
In India, gold breached all previous records to hit the high of Rs 14,320 per 10 gm taking consumers and stockiest out of the trading floors.
Standard gold shot 2 per cent up or Rs 285 to hit the level of Rs 14,000 per 10 gm. The benchmark variety of precious metal closed at Rs 14,105 per 10 gm. Pure gold also gained 1.98 per cent or Rs 275 to end the day at Rs 14,160 per 10 gm.
The yellow metal recorded 7.43 per cent gain over the week. The rupee hit the record low of 49.30 against the dollar amid financial uncertainty.
“With its historical, monetary and cyclical values, gold gains when all other asset classes collapse to add intrinsic value to investors’ confidence. In the current uncertain market, gold can be the only investment option where one can park funds for guaranteed return,” said Ashok Mittal, a precious metal analyst with Karvy Commodities Broking.
Bhargav Vaidya, an analyst with Mumbai-based precious metals trading firm B N Vaidya & Associates, however, feels that gold may further go up to $952 an ounce next week before an imminent correction.
Gold futures for delivery in December on the COMEX division of the New York Mercantile Exchange gained 4.4 per cent to trade at $925.5 an ounce.
Gold hit the record high of $1,030.80 an ounce on March 17 and slipped below $740 on September 11 as the dollar rose and inflation worries receded.
On the Multi Commodity Exchange (MCX), gold, for delivery in December, was traded at Rs 14,084 per 10 gm, a gain of 3.52 per cent, after hitting the intraday high of Rs 14,320 per 10 gm. April 2009 delivery contract of gold was quoted at Rs 14,450 per 10 gm, a gain of 2.94 per cent.
