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Gold touches 18-month high on global cues

Gold touches 18-month high on global cues


New Delhi: Tracking firm global cues, gold prices zoomed to 18-month high of 10,250 per ten gram on the bullion market here on 1 November, due to brisk buying by stockists and jewellery fabricators.

The market, already having firm tone on heavy demand for the current festival and marriage season, gathered momentum after reports of a steep rise in gold prices in international markets.

The gold in international markets reach closer to a 28-year high of $800 an ounce and pushed up the precious metal’s rate to a level last seen in May 2006.

Global bullion markets turned strong after the US Federal Reserve cut interest rate by 25 basis points last night to 4.5% to create more liquidity to avoid the subprime impact in the American housing sector.

Marketmen said heavy buying by stockists and jewellery fabricators for festivals such as Diwali, and marriage season boosted buying in the market.

They said crude oil surging to new record peaks and dollar weakening in forex markets also raised the demand for dollar-priced precious metals as a safe haven.

Standard gold and ornaments zoomed to touched an over 18-month high level by adding Rs150 each at Rs10,250 and Rs10,100 per ten grams, levels last seen on 19 May, 2006. Sovereign also rose by Rs150 at Rs8,250 per piece of eight gram.

Silver ready posted a gain of 50 at 9,100 per kilo and weekly-based delivery by 0 at 8,950 a kilo. Silver coins were quoted higher by 00 at 4,900 for buying and 25,000 for selling of 100 coins.

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