Gold prices surging toward Rs 16k level

By M H Ahssan

Surging gold prices set yet another record of Rs 15,800 per 10 gram in the national capital and Rs 15,925 in Kolkata per 10 gram on Thursday in line with the surging global bullion markets on speculation that the global recession will deepen further. The precious metal recorded fresh gains of Rs 50 to Rs 15,800 a level never seen before after poor economic data of Russia and Japan raised concerns of a growing malaise of global recession. Jewellers and market analysts said the demand of the yellow metal picked up after the global equity and forex markets dropped in the recent past.

They said shaky investors find no other option but to park their funds in the precious metals while physical buying for the current marriage season declined substantially. “We do not see any customers these days as surging gold prices cooled down the demand for jewellery in this marriage season,” said a Delhi-based jeweller Gaurav Anand. A similar trend in other regional bullion markets in the country also dampened trading sentiment to a great extent. In Kolkata the gold opened at a record high of Rs 15,925 per 10 gram.

Gold futures break all records
Gold futures continued hitting a new high for the third day on Thursday at Rs 15,712 per 10 gram in early trading on the Multi Commodity Exchange (MCX), on continued buying on speculations that the global recession will deepen further. The far-month June contract for gold surged by Rs 138 or 0.88 per cent to touch a new high of Rs 15,712 per 10 gram at the MCX counter.

The contract clocked business volume of 268 lots (one lot is equal to one kg) in early trade. Gold for April month contract rose by Rs 145 or 0.93 per cent to Rs 15,706 per 10 gram, clocking a business turnover of 4,665 lots. Firming trends in spot markets on account of marriage season also influenced metal prices. At Chennai, gold opened Rs 235 higher to Rs 15,725 per 10 gram. “Continued investment buying and break of $980 an ounce level, an important resistance level, supported the bull-run in the precious metal,” Galipelli Harish of Karvy Comtrade said.

In the global markets gold touched a high of $988.40 an ounce on Wednesday.