Gold up to a all time-high on bullish market phase
24 Nov 2009
Gold surged to an all-time high on Monday of over Rs17,800 per 10 gram in Delhi on brisk buying by stockists for the ongoing marriage season even as the dollar weakened.
The precious metal, which had gained substantially in the last five trading sessions, rose further by Rs210 to settle at Rs17,810 per 10 gram as global cues led to speculations of further rise in prices.
According to marketmen, reports of the metal rising to record- high levels in the overseas markets, which normally sets the domestic price trend, coincided with the bullish phase in the local market, which was up on market demand.
In other Asian markets gold moved up to a peak of $1,167 an ounce as investors, switched to bullion since they considered it the best option with the weakening US dollar, according to marketmen.
According to analysts, a weak dollar against leading currencies and India buying gold are major factors in the gold price rally.
The rally started with the RBI buying 200 tonnes of the metal from the International Monetary Fund last month triggering speculation other apex banks many would follow suit, according to traders.
Analysts say India gold futures may ease from the record highs on Tuesday on profit-taking after rising 10 per cent since the start of the month. They add, December gold would like open at Rs17,540 per 10 grams.
They say there could be profit-taking after the recent rise but further moves would be data-dependent.