In the international market, gold traded near its record level as a fresh exodus from risky assets increased the yellow metal’s appeal as an alternate investment
Gold prices in India touched a new all-time high on Wednesday while silver too scaled a new record peak as the precious metal came within striking distance of its lifetime high that was struck in June this year.
Gold prices touched Rs19,470 per ten grams in New Delhi today on steady buying by jewellers ahead of the crucial festival and marriage season.
Silver prices jumped to Rs31,775 per kg, the highest level for this year, on increased offtake by industrial units and coin makers.
In the international market, gold traded near its record level as a fresh exodus from risky assets increased the yellow metal’s appeal as an alternate investment. Other commodities such as crude oil and copper declined while silver rose near the highest level since March 2008.
Gold is 0.4% from a record in London and futures had the highest ever close yesterday in New York.
Spot gold added as much as US$4.97 to US$1,260.52 an ounce, the highest price since June 28. The metal traded at US$1,259.70 at 11:18 a.m. in London.
Gold for December delivery was 0.2% higher at US$1,261.20 on the Comex in New York. Futures yesterday closed at a record US$1,259.30.
Gold has jumped 15% this year and is set for its 10th annual gain as investors seek protection against financial turmoil in Europe and the prospect of slowing economic growth in key regions like the US and China.
US and European markets fell yesterday after a report from the Wall Street Journal suggested that Europe’s much hyped “stress tests” weren’t tough enough and that the strength of region’s financial system remains suspect.
The euro suffered after the German Banking Association said that the country’s 10 biggest lenders may need another €105bn of additional capital.
Germany's Die Zeit reported late on Monday that banks could be required to hold a Tier 1 capital level of 9% under new rules dubbed Basel III, potentially rising to 12% in boom years in order to build reserves to pay for a downturn.
The Federal Association of German Banks had estimated that the country's ten largest lenders could need as much as 105 billion euros (US$135bn) of extra capital under planned Basel rules.
The euro was little changed against the dollar as traders increased bets the Federal Reserve will keep interest rates near zero, while the yen rose to a 15-year high against the greenback.
Crude oil for October delivery slipped as much as 72 cents to US$73.37 a barrel in electronic trading on the New York Mercantile Exchange. It was at US$73.58 at 10:40 a.m. London time.
