Gold crosses 14K for first time in early trade

Gold crosses 14K for first time in early trade

Mumbai: Devastating global equity markets amid strong global cues and sustained festival buying pushed up gold prices to breach the 14K-mark to reach a new peak of Rs14,075 on the bullion market at opening here today.

Safe-haven buying following a steep drop in world equity markets was the main reason behind the rise in the yellow metal, a trader said.

Gold prices in Singapore rose to an over two-month high while US futures jumped nearly 4% as investors scrambled for safety after heavy losses in share values.

Investors are worried over the deepening US credit crisis which is now percolating to other countries and they preferred to play safe by investing in gold rather than tumbling equity markets all over the world.

Standard gold (99.5 purity) was up Rs255 per 10 grams to open at Rs14,075 from Rs13,820 previously.

Pure gold (99.9 purity) spurted to 14,145 from Wednesday’s close of 3,885.

Silver ready (.999 fineness) shot up Rs510 a kilo to Rs20,680 from last close of Rs20,170.