Gold prices touched an all time high of $1,244 an ounce on Wednesday. Gold prices have been moving up steadily for the past few weeks as investors fret about the health of the European economies and find gold a
safe haven. Even the $1 trillion debt package announced by European Union has not been able to calm nerves.
It’s all about currency as the Euro weakens against the dollar, gold is the best bet, said Mr Anand James, analyst with Geojit Comrade.
In rupee terms gold, which touched Rs 18,130 per 10 grams, nearly Rs 300 up over Tuesday’s price, is not far from its life time high of Rs 18,294 which it touched on December 2, 2009.
This is because of the rupee strengthening against the dollar. The price of gold can go up to Rs 18,300 per ounce if the Greek crisis persists. It is reaching tipping point as a large debt of 7.5 billion euros is due for maturity this month.
There is a positive sentiment in the Indian market presently because a good monsoon that has been predicted, is usually associated with jewellery buying. Gold expert, Mr M. S. Daga, said gold prices will continue to remain high.
Previously it was only Indians who cornered gold but now the contagion has spread to Pakistan, China and even the United States because of economic instability.