12 April 2006

Sky’s the limit - Indian Gold Commentary

The Statesman: "Agencies
MUMBAI/HONKONG, April 11: The prices of gold, considered to be investors’ safe haven for ages, zoomed to a new peak of Rs 8,905 per 10 gm in Kolkata on aggressive buying by stockists, sparked by reports that the metal touched a 25-year high by crossing $600 level in overseas markets.
The metal received a booster from strengthening Asian and European bullion markets where it crossed $600 an ounce, influenced by spiralling crude oil prices and weakening dollar against the Euro and other major currencies.
The Kolkata market was the biggest gainer as gold reached an all-time high of Rs 8,905 per 10 gram, recording a gain of Rs 160. In Mumbai, it traded at its highest level of Rs 8,810 per 10 gram, a rise of Rs 105. However, there was no trading in Chennai, as the market was closed for “Mahavir Jayanti”.
The Delhi market, which was closed during the day, witnessed some off-the-market deals gaining Rs 80 at a record high level of Rs 8,850 per 10 gram, a level never seen before, as stockists enlarged their holdings ahead of official opening tomorrow morning.
Gold closed in Hong Kong at $601.60 an ounce, higher by $5.10 an ounce from yesterday’s close of $596.50. It had last hit the $600 mark in 1980. Silver broke the $13 an ounce for the first time in 20 years, buoyed by the expected launch of a silver-backed exchange fund.
The bullion markets were already moving ahead since last week as retail customers’ buying for the coming marriage season has already set in.
Gold is traditionally a safe haven investment during financial instability. Its stock has risen as an alternative to the weak greenback, pressured by fears of increased US military spending in West Asia.
Meanwhile, the dollar fell against both the"

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