Safe haven gold surges over Rs 25,000/10 g on global cues

In Mumbai, gold of 99.9 purity surged Rs 460 to Rs 25,230/10 grams while 99.5 purity gold rose by a similar amount to Rs 25,110. On Comex, the commodity trading division of the New York Mercantile Exchange (NYMEX), gold prices have touched a new high of $1,715 an ounce. The sustained increase in gold prices boosted investment demand.

"Customers have curtailed buying jewellery while impulsive purchases have vanished. Gold jewellery is now being bought only on special occasions such as marriages and other important family functions," said Mr Kirit Shah, a Mumbai-based jeweller.

The yellow metal rose sharply in the futures markets, as well. On MCX, gold for October delivery was up by 1.55 per cent at Rs 25,034 per 10 gram, gold guinea rose 1.69 per cent to Rs 20,215 per 8 gram and gold petal of one gram was up 1.80 per cent at Rs 2,541.

Traders expect the run-away gold prices to take a breather with profit-booking.

Mr Sushil Sinha, Assistant General Manager, Karvy Comtrade, said: "In the domestic futures market, fresh buying is expected at the Rs 24,200-level, depending on the trend of the US markets."

source: The Hindu