 |
| |
WEEKLY
SECTIONS |
 |
|
 |
| Gold shoots up to record Rs36,500 a tola |
|
|
|
Thursday, November 05, 2009
By Samia Saleem
KARACHI: In another meteoric rise, gold climbed to Rs36,500 a tola on Wednesday from Rs36,000 per tola on Tuesday.
“This latest surge is said to have been caused by heavy buying of gold by India from the International Monetary Fund (IMF),” said Haji Haroon Chand, the President of All Sindh Saaraf and Jewellers Association. “Besides, China is also geared up to buy more gold and hence this leap,” said he.
The rate of ten grams of gold reached Rs29,571 from Rs29,168, which was the closing rate of market on Tuesday resulting in a total rise of Rs403. In the international markets, gold rose to a new high of $1,095 per ounce.
Most of the international and individual investors are investing in gold as a safe haven investment. “Nowadays investors have stopped spending on stocks and property and are approaching gold markets for investment,” said Chand, adding prices are likely to rise further.
“International experts believe that the price of gold will go up further due to investors’ growing interest in the yellow metal. Locally, gold is under-cost by Rs200 over gold in Dubai as we have a smaller market here,” said Chand.
Gold hits record above $1,095: Gold hit a record high above $1,095 an ounce in London on Wednesday as dollar weakness added to momentum triggered by India’s purchase of 200 tonnes of gold from the IMF, adds Reuters.
Gold is now poised to target the psychological $1,100 an ounce level, dealers said. Spot gold struck a high of $1,095.40 an ounce and was bid at $1,094.10 an ounce at 1552 GMT, against $1,084.50 late in New York on Tuesday.
The IMF said on Tuesday it had sold 200 tonnes of gold to the Reserve Bank of India, half of a long-planned bullion sale that had threatened to slow gold’s ascent. “India has (prompted) new speculation of pent-up demand for gold diversification by central banks,” said Michael Lewis, head of commodities research at Deutsche Bank.
“There is a long list of central banks which have very low gold reserve ratios, and in aggregate central banks should be net buyers of gold over the next year for the first time in 20 years.”
Market watchers are now speculating over the destination of the remaining 403 tonnes of gold the IMF has to sell.
Weakness in the dollar has added to this momentum, dealers said. The dollar index retreated from a one-month high on Wednesday as traders braced for a policy decision from the Federal Reserve. Gold typically moves in the opposite direction to the dollar. Strength in the US unit makes gold, like all dollar-priced commodities, more expensive for holders of other currencies, and cuts its appeal as an alternative asset.
US gold futures on the COMEX division of the New York Mercantile Exchange also hit record highs at $1,096.50 an ounce. Spot gold prices also rose to an 8-month peak in euro terms of 741.77 euros, and hit their highest since early June when denominated in Australian dollars, at A$1,206.74.
|
|
|
| Back
| Send
this story to Friend | Print
Version |
|
|
|
ISSN 1563-9479 
