Old is Gold but Gold is what?
Gold rose to a record high in Mumbai on overseas guidance as rising oil prices and a weak dollar bolstered the yellow metal to a new all-time peak on Tuesday.
In Mumbai, standard gold touched a high of Rs 16,120 per 10 gm, a rise of Rs 190 from on Tuesday. The bullion had earlier touched a record high of Rs 15,980 on September 16. The booming festival demand helped the metal achieve this level.
Gold rose to a record high in Mumbai on overseas guidance as rising oil prices and a weak dollar bolstered the yellow metal to a new all-time peak on Tuesday.
In Mumbai, standard gold touched a high of Rs 16,120 per 10 gm, a rise of Rs 190 from on Tuesday. The bullion had earlier touched a record high of Rs 15,980 on September 16. The booming festival demand helped the metal achieve this level.
US dollar at 13 month low
The US currency slid to a 13-month low against the euro on Tuesday. Weakness in the unit makes dollar-priced commodities such as gold and silver cheaper for holders of other currencies. The dollar weakened to 46.32 on Tuesday. The demand for gold is likely to continue in the near future due to festival and wedding seasons in India. On October 15, dhanteras, considered an auspicious day to buy precious metal, will be observed.
"Although consumers are a little apprehensive over fresh purchases amid expectations of an imminent correction, we are expecting a good business on Dhanteras," said Ketan Shroff, director of Mumbai-based jewellery retailer Pushpak Bullions.
Gold is getting a further boost from uncertainties over recovery in the US housing market. President Barack Obama has so far increased the US marketable debt to a record to bring growth on track in the world's biggest economy.
Gold holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion delivery, perked up to a record 1,109.31 tonnes as of October 12.
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