Demand from India helps gold surge to 28-yr high globally
Sunday, 28 October 2007
London, Oct 27 (PTI): Gold prices surged to nearly 28- year high in global market yesterday, mostly supported hy the rising demand from Indian markets where precious metal scale 17- month high on heavy demand for the seasonal demand.
While the dollar-denominated precious metal in London surged to 776 dollar an ounce, matching a record last seen on January 2, 1980, it climbed to trade in five figures at Rs.10,050 per ten gram in India, a level last seen May 24, last year on heavy buying for celebrations like festival of Diwali and marriages.
The global bullion market much co-related with the forex markets and crude oil, spurred as dollar slumped to a record low against the euro and oil traded at an all-time high, boosting bullion's appeal as a hedge.
Bullion merchants said some investors view dollar-priced gold as a hedge against further declines in the currency and raising concerns of inflation as energy prices surge.
They said the market which was passing through a geopolitical tension in the middle-east, the crude rising to record above 92 dollar a barrel for the first time in New York remained driving factor in pushing up the precious metal and could take it to 900 dollar level.
Speculative long positions in New York gold futures would rise has outnumbered short positions by 2,01,859 contracts in the week ended October 16, a highest since at least 1994 they added.
While the dollar-denominated precious metal in London surged to 776 dollar an ounce, matching a record last seen on January 2, 1980, it climbed to trade in five figures at Rs.10,050 per ten gram in India, a level last seen May 24, last year on heavy buying for celebrations like festival of Diwali and marriages.
The global bullion market much co-related with the forex markets and crude oil, spurred as dollar slumped to a record low against the euro and oil traded at an all-time high, boosting bullion's appeal as a hedge.
Bullion merchants said some investors view dollar-priced gold as a hedge against further declines in the currency and raising concerns of inflation as energy prices surge.
They said the market which was passing through a geopolitical tension in the middle-east, the crude rising to record above 92 dollar a barrel for the first time in New York remained driving factor in pushing up the precious metal and could take it to 900 dollar level.
Speculative long positions in New York gold futures would rise has outnumbered short positions by 2,01,859 contracts in the week ended October 16, a highest since at least 1994 they added.