Gold prices zoomed to a record high on Tuesday as global investors turned to the yellow metal on fears over global economy and inflation. A slump in the equities market across the globe also aided the rise of the precious metal, which closed at Rs 15,295 for 10 gm in Mumbai, as investors looked to gold as an alternative investment.
Even 22-carat ornament gold closed above Rs 15,000 at Rs 15,230 for 10 gm. On Tuesday, gold gained Rs 475 even as it rallied to a seven-month high in the global market to around $960 an ounce.
Even 22-carat ornament gold closed above Rs 15,000 at Rs 15,230 for 10 gm. On Tuesday, gold gained Rs 475 even as it rallied to a seven-month high in the global market to around $960 an ounce.
There were two main triggers for the gold’s rise in the global market. The first was a report from Moody’s saying banks in western Europe were exposed to the rapid economic decline in eastern Europe. The second was Russia’s announcement that gold share in its foreign exchange reserve had increased and it would continue to buy more gold.
“The economic situation is bad and markets around us are crashing. In this situation, the only option for investors is gold and silver,” said Mr Suresh Hundia, President of the Bombay Bullion Association.
“The economic situation is bad and markets around us are crashing. In this situation, the only option for investors is gold and silver,” said Mr Suresh Hundia, President of the Bombay Bullion Association.