Gold prices soar in India as demand rises

Gold prices went past the Rs 28,000 per 10 grams to surpass all previous records, as the metal’s safe haven appeal sparkled amid fears of another global economic turmoil that saw world stocks plunging.Experts said prices may even touch Rs 30,000 level well before Diwali as investors are increasingly shifting funds to gold amid free fall in equity markets. Gold prices in the metros jumped in the range of Rs 960-1,195 per 10 grams.Gold in Kolkata was traded at Rs 28,235, while in Delhi it recorded biggest single-day gain of Rs 1,310 to trade at Rs 28,150 per 10 grams.The precious metal was quoted at Rs 27,980 in Chennai and at Rs 27,750 in Mumbai. In the futures market also, the December contract on the Multi Commodity Exchange (MCX) touched yet another record high of Rs 28,201 per 10 grams at 1730 hrs. The trading sentiment at home was bolstered by gold’s ascent to record levels in overseas markets, as mounting concerns over sovereign debt and slower growth spurred investors to seek the perceived safety of bullion as an investment haven.In London, the spot gold prices zoomed past record $1,867.95 an ounce on concern over melting equity markets. There was scattered demand in the local spot market in view of coming marriage and festival season, even as many were unsure of correction in prices in the coming days.Analysts and branded jewellery makers said that the rally in gold prices is expected to continue as the US and Europe have no over-night solution to tackle the economic uncertainties.“Domestic gold rates may cross Rs 30,000 per ten gram before Diwali (October 26-27),” Gitanjai Group Chairman and Managing Director Mehul Choksi told PTI. He strongly felt that gold demand in India, the world’s largest consumer of precious metal, would not be deterred by a sharp price rise as import of precious metal is higher so far.He also said that the sharp rally could take prices beyond Rs 30,000 per ten gram soon and it would be a good time for those sellers.  As per the World Gold Council, India’s gold imports rose by 34.9 per cent to 553 tonnes in the first half of this year.Echoing views, commodity brokerage firm JRG Wealth Management Senior Analyst Chowda Reddy said gold would continue to remain expensive till the global financial markets improve and the rupee strengthens against the US dollar. “Consumers are finding it difficult to accept the current price.They are in a fix whether to buy or sell gold. Most of the buyers are waiting for a correction. No one is in any hurry to buy,” Delhi-based P P Jewellers Director Pawan Gupta said. From / Gulf Today