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NEW DELHI: The dream run of gold and silver is continuing. Price of gold closed above Rs 18,000 per 10 gram on Wednesday in Indian markets, after crossing $1200 per ounce in the international markets on Tuesday.
Price of silver has also crossed Rs 30,000 per kg — an all time high — on Wednesday. Despite rising prices, bullion traders said, there is a good demand from investors as they expect prices to rise further. A senior merchant banker said the apprehension over weakening of dollar and fresh demand from central banks world over are adding shine to the precious metals.
On Wednesday, price of pure gold (99.9 purity) spurted by Rs 270 per 10 gram to close at Rs 18,310. Price of silver ready (.999 fineness) rose by Rs 690 per kilo to Rs 30,140. The gold price in the international market is quoting at a record high of $1212 per ounce. Silver has also touched an all-time high of $19 per ounce. In the developed markets like Japan, Europe and US, large funds are investing in gold in the expectation of further rise in prices.
Expectation of price rise got further credence from the decision of RBI and Sri Lankan central bank to buy gold from IMF. RBI’s decision to buy 200 tonnes of gold at an average price of $1,045 per ounce has made it richer by $1.07 billion.
Investors have taken it as a trend. If more and more central banks buy gold to diversify their reserve portfolio, prices of the yellow metal will move up further. In the last one year, investment in gold has yielded a return of around 35%, which is very attractive, considering most of the other assets have depreciated in the last one year. However, with rising prices, interest of retail buyers declined in gold.
Source: http://timesofindia.indiatimes.com/biz/india-business/Gold-silver-glitter-at-an-all-time-high/articleshow/5294028.cms
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