Gold, the yellow metal that has gotten ever so precious since last week, touched an all time high in the domestic market Investing in gold a safe bet Gold emerges as safe option Tips for good quality gold Investors' favourite choice on Friday. On MCX, February contract of gold was trading above Rs 14,400 per 10 gm, up 2% from Wednesday's low. The rise is in line with international futures that has breached the key resistance of $918-920 an ounce. However, the 7% rise in domestic prices in the last one week is weighing heavily on physical demand. According to Suresh Hundia, President, Bombay Bullion Association, while the rise in price has increased the selling interest in many retail investors, there are no buyers in the physical market. “Retail investors who own the metal for investment purpose are queuing up in the physical market in order to take advantage of higher prices. However, there are fewer market participants who are buying from such investors as the over all physical demand is very low,” he added. The sharp rise in domestic gold price is also due to a weaker local currency which has depreciated by more than 4% since mid December. In early 2008, when international prices reached an all time high of $1033, the rupee was at a stronger standing against the dollar trading below Rs 40 per dollar. Domestic gold prices made a high of nearly Rs 13,100 in March 2008.

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