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India gold hits new record high on safe-haven buying

India gold hits new record high on safe-haven buying
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First Published: Fri, Feb 20 2009. 05 42 PM IST
Updated: Fri, Feb 20 2009. 11 01 PM IST
Mumbai: India’s gold futures continued their record-breaking spree on Friday evening as investors poured money into the safe-haven asset due to a deepening global recession, analysts said.
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“It looks like fund houses have exited equity markets and increased their exposure in gold,” said Harish Galipelli, head of research with Karvy Comtrade in Hyderabad.
The benchmark April contract witnessed an all-time high of Rs15,780, before trading 1.81% higher at Rs15,735 at 5:39pm.
“On MCX, probably the next target would be Rs16,500,” Galipelli added.
“As long as this uncertainty prevails over global financial stability prevails, gold would continue to decouple with dollar and crude, Galipelli added.
In 2008, gold soared to its year-high of Rs14,320, up 35.1% from its 2007 close, before falling to 11,290 on 24 October. Gold has more than doubled since 2004.
“We remain bullish in gold as we believe the rupee would depreciate further,” said K.N. Rahman, research head with Way 2 Wealth Securities in Mumbai.
“Technical breakout has already taken place at Rs15,676 and there could be further technical buying,” Rahman added.
Buying is recommended on lower levels of Rs15,690, with a target of Rs15,775 and with a stop loss of Rs15,630, Rahman added.
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First Published: Fri, Feb 20 2009. 05 42 PM IST