DOMESTIC gold prices again crossed the psychological level of Rs 12,000 per 10 gm on Tuesday on speculative buying after a steep rise in global prices. But it’s not the physical demand that is driving the prices this season. Bullion traders said the firm international prices, which is a combined result of the US economic weakness and a slide in dollar value, are the main reason for the latest run-up.
And hence, the yellow metal is slowly going out of the common man’s reach as the prices are hitting new peaks each day, making the commodity almost unaffordable for the retail user.
Reports that the metal rose more than 2% to $929 an ounce in international markets pushed up the local prices. In Asia, gold rose by $6.48 to $911.68 an ounce. The dollar’s slide against major currencies was the key reason for the rush for gold in global markets, analysts said. Gold and dollar usually move in opposite directions. When the dollar declines, gold gains as an attractive alternative investment option, they added. The metal climbed to a record 936.92 an ounce on February 1.
Turning to local markets, Kolkata markets saw a hefty jump of Rs 170 as the metal settled at Rs 12,045 per 10 gm. Incidentally, it was same closing mark of February 9 when the metal had touched a life-time high of Rs 12,045. Prices shot up by Rs 110 in Chennai before ending the day’s business at Rs 11,755 per 10 gm. In Delhi, gold gained Rs 85 to end at Rs 11,840 per 10 gm. Mumbai, the major gold market in India, remained closed on Tuesday for Chatrapati Shivaji Jayanti.
A similar firmness was also noticed in silver on sustained support from upcountry buyers after a steep rise in international prices. In London, spot silver rose to $17.38/17.43 an ounce, which triggered aggressive buying in local markets, sources said.
In the spot market, ready silver (.999) became costlier by Rs 360 in Chennai before finishing the business at Rs 22,795 per kg. In Kolkata, the metal traded Rs 250 higher at Rs 21,250 per kg, while Delhi markets saw a gain of Rs 200 as the metal closed at Rs 21,500 per kg.
And hence, the yellow metal is slowly going out of the common man’s reach as the prices are hitting new peaks each day, making the commodity almost unaffordable for the retail user.
Reports that the metal rose more than 2% to $929 an ounce in international markets pushed up the local prices. In Asia, gold rose by $6.48 to $911.68 an ounce. The dollar’s slide against major currencies was the key reason for the rush for gold in global markets, analysts said. Gold and dollar usually move in opposite directions. When the dollar declines, gold gains as an attractive alternative investment option, they added. The metal climbed to a record 936.92 an ounce on February 1.
Turning to local markets, Kolkata markets saw a hefty jump of Rs 170 as the metal settled at Rs 12,045 per 10 gm. Incidentally, it was same closing mark of February 9 when the metal had touched a life-time high of Rs 12,045. Prices shot up by Rs 110 in Chennai before ending the day’s business at Rs 11,755 per 10 gm. In Delhi, gold gained Rs 85 to end at Rs 11,840 per 10 gm. Mumbai, the major gold market in India, remained closed on Tuesday for Chatrapati Shivaji Jayanti.
A similar firmness was also noticed in silver on sustained support from upcountry buyers after a steep rise in international prices. In London, spot silver rose to $17.38/17.43 an ounce, which triggered aggressive buying in local markets, sources said.
In the spot market, ready silver (.999) became costlier by Rs 360 in Chennai before finishing the business at Rs 22,795 per kg. In Kolkata, the metal traded Rs 250 higher at Rs 21,250 per kg, while Delhi markets saw a gain of Rs 200 as the metal closed at Rs 21,500 per kg.
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