Gold traded in jerky session on Tuesday as traders backed away from the safe investment amid anticipation that the financial system can return to normal.

In the international spot market, Gold belled the day at $887.50. During the session, it gained steam as worse than expected retail sales caused the equity markets to fall and gold rapidly rallied, touching an intraday high of $893.

Gold typically moves opposite the US currency owing to its hedge value. The dollar remained choppy as compared to other majors on Tuesday, giving back early gains.

In spite of the recent drop in gold prices in India to slightly over Rs 14,200 per

Gold prices again came in action on Wednesday on the back of reports that the glamorous metal would soon retrieve the psychologically important level of $1,000 per ounce in overseas market in coming few months, due to volatility in stock markets.

It should be noted that earlier this week, precious metals consultancy GFMS said in its annual gold survey report that, the gold prices could rise to a record above $1,100 an ounce in the coming months, as investors seek to guard against rising inflation.

Yesterday, the price of yellow metal soars by an impressive Rs 315 to close at Rs 14,735 per 10 gm in Delhi.

In a world where everyone is going crazy over gold, at least one man wants us to buy silver instead. World gold inventories, including jewellery, have increased from 1 billion ounces (one ounce equals 28.35 grams) in 1940 to 5 billion ounces today. In contrast, silver inventories have declined from 10 billion ounces in 1940 to 1 billion ounces, Theodore Butler, silver analyst, Butler Research told Vivek Kaul of DNA Money. Excerpts from an email interview:

How did you get into tracking silver?

Even after revival in equity markets, correction in gold prices will be gradual and limited, say experts

Amid global recession, gold has emerged as the only investment avenue, which not only offers safety, but also gives healthy returns. However, following unprecedented surge in the gold prices, certain sections of the investors have become sceptic about future movement in the yellow metal, as they have bitter experience during the boom time in the commodity markets in 2008, particularly in case of crude oil. Their concern seem to be valid, as experts don't rule out correction in gold, but at the same time they also concede that unlike other commodities, correction in gold will be limited and gradual.

Size of jewellery market in India is expected to double in next six years. According to a recent assessment by Associated Chambers of Commerce & Industry of India (Assocham), current size of the market is estimated to be around $15 billion, which is likely to touch $30 billion by 2015 driven by demand for gold and diamond jewellery. Worldwide market for gems and jewellery industry is believed to be more than $150 billion.