|
|
Market Eye
| Yellow metal shines, touches 52-week high | 17/07/2009 11:32:43 | AHMEDABAD: Taking a cue from the firm international trends in the yellow metal, spot
gold prices in the domestic market surged to a 52-week
high of Rs 15,040 per 10
gram on Thursday. Gold prices went up by Rs 130 to Rs 15,040 per 10 gram in New Delhi's market.
However, the bullion market in Mumbai witnessed a gain of Rs 80 in the yellow metal as per 10 gram price settled at Rs 14,900 on Thursday.
During the same period, the prices in the futures markets have gone up from Rs 14,496 to Rs 14770, appreciating by 1.9% in the last five days. Gold prices in the domestic markets have staged an upward rally since last five days due to firm international trends in the yellow metal as dollar is depreciating against all international leading currencies. In the international market, gold moved from $907 per ounce to $937 since last five days.
"We are just catching up with international price trends due to weakness in the dollar that has renewed an appetite for the yellow metal as a safe heaven in global markets," said Dharmesh Sodha, director, World Gold Council-India.
Traders in the bullion market said that some amount of buying in the precious metal has been witnessed as stockists and jewellery makers indulged in creating fresh positions on the expectation of normal monsoon.
"We are not expecting much of buying at the current market prices. However, satisfactory monsoon condition can trigger higher demand from rural markets," said Prithviraj Kothari of Riddhi Siddhi Bullion, a leading Mumbai-based firm. However, analysts believe that gold prices are expected to remain firm if weakness in the dollar continues. As the risk of inflation builds up, there are clear risks of the dollar weakening against all currencies.
Weakness in the dollar is largely behind rising optimism towards gold, on fears of a rise in US debt issuance to bankroll recovery. "Even moderate level of inflation situation can increase investors' appetite for yellow metal as heedge against dollar in global markets," an analyst with a brokerage firm said. | Market
Eye List
|
