Gold prices touch record level
The gold prices increased 4.6 per cent to Rs 14,146 per 10 gram due to large interest of investors in the yellow metal in the midst of economic uncertainty and strong position of dollar against other major currencies. The prices touched a three-month high of $930 an ounce in the international market, confirming it as the safest investment mode under current economic environment.
An analyst with Anand Rathi Commodities, Subodh Gupta said, "The economic uncertainty in Europe, and the strong dollar is making gold attractive as a safe-haven investment rather than a hedge against inflation."
He further added that gold prices may touch $1,050 an ounce in few months saying, "People are losing faith in paper currencies, and gold is looking to be the safest investment bet."
Investors have shown good interest in gold exchange traded funds. Gold holding at ETF and the Barclays Gold Trust increased about 70 tonne in the last two weeks and currently stood at 1079.8 tonne.
Experts believe that rupee depreciation as compared to US dollar and some local factors such as increased number of marriages on Basant Panchami also helped to increase gold prices in the domestic market.
Silver prices also rose by Rs 150 at Rs 19,550 per kg in the market. Silver coins were sold at Rs 27,900 and brought at Rs 27,800 per 100 pieces.