Gold prices touched another high on Tuesday, when they crossed Rs 19,000/10 gms in Delhi and Mumbai bullion markets.
Prices of the yellow metal had crossed the 19k mark in Delhi earlier, but it is a first for Mumbai. Internationally too, gold prices touched an all time high of $1,254.3/ounce before slipping back a bit.
Prices of gold have risen as investors go easier on other assets as ecnonomic uncertainty persists. Stock markets the world over have been in the red ever since the Hungarian government raised the spectre of debt default.
After a 336 point fall on Monday, the BSE Sensex dropped another 164 points on Tuesday. “Prices of gold could go up to $1,300/oz from their current levels,” says Mr Kuljeet Kataria of Motilal Oswal. This is around 5 per cent higher.
However, there could be a price correction in the next 3-4 months, he said as the Eurozone quietens. A good time to buy gold would be around Diwali, he adds.