NEW DELHI/MUMBAI: After the crash, the gold rush. This has happened always. And this time also there is no difference — panicked investors are now rushing to buy gold as recession started spreading across the globe.
Friday was one of the worst days for the markets across the world with all indexes slumping to record lows. Adding to the panic in India was rumours about ICICI Bank landing in big trouble.
All this crisis led to gold prices soaring to record levels. It touched Rs 14,320 per 10 gm on Friday. And, if the present trend is any indication, the gold prices will cross Rs 15,000 per 10 gm even before Diwali when gold demand goes up in India.
This may spoil the festive mood across the country as many people invest in the yellow metal during the festivals.
Safe haven buying continued throughout the day on Friday globally that took the yellow metal to an intraday high of $929.80 an ounce in early London trade.
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 on Friday.
The yellow metal recorded 7.43 per cent gain over the week. The rupee hit the record low of 49.30 intra day on Friday against the dollar amid financial uncertainty.
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.
