Gold touches Rs10,000 as stocks fall

Gold touches Rs10,000 as stocks fall

New Delhi: Gold shot up to a 17-month high of Rs10,000 per ten grams on the bullion market today on heavy seasonal demand amid funds getting diverted from crashing stock markets.

Earlier, the precious metal had traded at Rs10,050 per ten gram on 24 May, 2006, on the back of weakening dollar. The dollar-priced metal normally moves in opposite direction to the dollar.

Gold, which remained on a rising spree on hectic buying by jewellery fabricators and stockists to meet current festival and marriage season demand, gathered momentum as more funds poured in from weakening stock markets and rose by Rs135.

The support was across the board as investors were left with no other option after the dollar fell to a record low, crude oil surged to record $90 a barrel and stock markets crashed in the last three straight trading sessions.

The precious metal’s rise in the global markets, which normally set the price trend in domestic markets, also remained a boosting factor. Gold in the US markets surged to 772 dollar, a 17-months high as the dollar hit a record low against euro.

Marketmen said some of the funds were shifting from crashing stock markets in the country after SEBI proposed to curb the investments made by unregistered investors, including hedge funds, in Indian stock markets.

Standard gold and ornaments shot up by Rs135 each at Rs10,000 and Rs9,850 per ten gram respectively, while sovereign rose by Rs50 at Rs7,975 per piece of eight gram.

Silver ready rose by 60 at 8,400 per kilo on local buying while weekly-based delivery shot up by 10 at 18,500 per kilo on speculative support.

Silver coins, normally used as a gift in marriages and for puja on Diwali, rose by 00 at 24,400 for buying and 24,500 for selling of 100 pieces.