Gold futures hit a record Rs15,617 per 10 gm on MCX

18 Feb 2009

Gold prices scaled a new high on the on the Multi Commodity Exchange today with a record high Rs15,617 per 10 gm for MAUc1, as against the previous day's Rs15,491, amidst falling stock and currency values.

The contract gained more than 28 per cent in 2008 as deepening global financial turmoil spurred safe haven buying.

India used to consume some 800 tonnes of gold per annum, accounting for 20 per cent of the global demand - some 600 tonnes used in jewellery while 200 tonnes are reprocessed.

Gold imports into the country, however, declined in 2008 by 14 per cent to 660.2 tonnes as higher gold prices and volatility hurt demand, the World Gold Council said.

"The combination of gold's safe haven appeal and extreme uncertainty surrounding other asset classes should see consumers continue to take advantage of any dips in the price (in 2009)," the industry group said in its review.