Gold futures struck a new high of $1881.90 in the Asia trades today as the weakness in equities persisted. There is nothing important on the economic calendar for the day from US.
Just last month we were watching gold approaching $ 1600 then it swiftly broke $1700 and then soon it cracked $1800 with no great efforts really. Now comes the turn of $1900 mark and the yellow metal is far just $19 from that level.
Gold price hit yet another new all-time record late on Friday, hitting $1,881 per ounce as stock markets around the world continued to plunge amid a slew of sluggish economic data. Gold for December delivery gained $30.20 to $1,852.20 an ounce on the Comex division of the New York Mercantile Exchange.
It was the biggest one-week rise since late 2008 and has gained around 31% in August as the world economic outlook turns gloomier by day by day. COMEX December gold futures have rallied nearly $400 to $1881 in span of less than 2 months.
Latest data showing a sharp drop in the factory activity in the Philadelphia region and unexpected slump in home resales, has fueled worries that the growth in the world's largest economy is faltering.
Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose by more than 1% to a one-week high of 1286.825 tonnes by Aug. 18.
Domestic gold futures have also rallied at the same pace as the international gold has. MCX October gold futures have rallied by more than 25% to nearly Rs. 27900 since 1st July 2011.In money terms it comes to a gain of near Rs. 6000 which may minimize buying at the time of the festival and marriage season in India.
