India gold at fresh peak on weak dollar

India gold at fresh peak on weak dollar

New Delhi: Gold continued its rising spree to set a fresh record at Rs18,550 per ten gram in the bullion market on Thursday as dollar remained weak.

The precious metal gained Rs90 from its previous level of Rs18,460 as expectations of further rise in prices made the metal, the alternate investment option, more appealing to investors than risk-loaded equities.

Marketmen said the stage for rally in gold was set by the Reserve Bank of India’s purchase of bullion from the IMF in October, fuelling speculation that other banks would follow suit.

“Gold rose on a bullish trend in overseas markets after dollar plunged and raised demand for the precious metal as safe hedge," said Mahesh Verma of Omsons Jeweller.

He said there was hardly any buying by retailers and actual users for the current marriage season.

Marketmen say fold is likely to continue its upward march in the coming days.

Gold might reach a peak of $1,300 an ounce next year as more investors purchase bullion to preserve wealth against a declining dollar, leading global bank - UBS said, and added that central banks buying also support a uptrend.

Silver ready too spurted further by Rs50 to Rs29,900 per kg while weekly-based delivery fell by 100 to Rs29,450 per kg on reduced offtake by speculators.

Silver coins continued to be asked at its peak level of Rs34,600 for buying and Rs34,700 for selling of 100 pieces.

Standard gold and ornaments climbed Rs90 each at Rs18,550 and Rs18,400 per ten gram respectively. Sovereign was up by Rs50 to Rs14,350 per piece of eight gram.

The metal rose to $1226.56 an ounce in Asian trading.