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Snehsan
GOLD SIZZLES TO RECORD PRICE OF RS 15,420 PER 10 GRAM
Amid continuing decline in stock markets, all-weather investment option gold zoomed past all previous records on Tuesday to set a record price of Rs 15,420 per 10 gram in the national capital. The metal surged by Rs 560, the biggest single-day rise in over one-year today in tune with rates in the global markets where gold rallied above 960 dollar an ounce. Dealers said melting stocks and forex markets left no other option for investors other than gold and they rushed park their funds in bullion. There was frantic buying by stockists and speculators on firming trend on the global front amid a plunge in equity markets, they added. Analysts had forecast that gold may touch Rs 16,000 per ten gram in short-term. The steep rise in prices, however, brought gloom to retail buyers particularly in the ongoing wedding season. A retail jeweller in Delhi said many prospective customers were postponing their buying decision as they are unable to grapple with with never-before like prices. "Retail buyers postponed their decisions to buy for the current marriage season in view of the sky-rocketing gold prices," said All India Sarafa (bullion) president Sheel Chand Jain, adding the surge was solely of speculative nature.
After resuming lower below the 9K-mark on the back of distinctly weak global cues, the benchmark recovered sharply to quote in positive terrain at 9,089.72 in early deals, supported by good buying from domestic funds. Recovery in the Sensex was led by smart rise in the Reliance Industries (RIL) and ONGC. The Bombay Stock Exchange 30-share barometer initially touched a low of 8,922.31 but rebounded to quote at 9,089.72 at 1015 hours, a rise of 54.72 points, or 0.61 per cent, over the previous close. The bellwether index had lost a massive 600 points in the last two sessions due to the disappointing interim Budget. The broader 50-issue Nifty of the National Stock Exchange also recouped by 14.05 points, or 0.51 per cent, to 2,784.55 at 1015 hours from its last close. Market participants attributed lower opening to weak global cues. Most of the Asian indices were trading lower due to steep fall on Wall Street yesterday. The Dow Jones Industrial Average and the Nasdaq Composite Index tumbled by 3.79 per cent and 63.70 per cent, respectively, due to worsening economic conditions and fears about the health of the financial sector as regional manufacturing data signalled the further downturn.