Soaring crude oil prices and falling dollar pushed gold to an all-time high of Rs 12,460 per 10 gram, up Rs 325, in the bullion market on Wednesday. Silver also shone to a 27-year record high level of Rs 23,600 per kg enhancing its appeal as a hedge against inflation.
The rally in precious metal prices were triggered by the reports of the crude touching an unprecedented high of $102 a barrel and the greenback falling to an all-time low against euro. The global trend, which normally sets prices in domestic bullion markets, is closely linked with the forex market and moves in the opposite direction of the US dollar.
Gold surged in London by $14.52 to $962.67 an ounce, while in futures trading, it rose to a record $964.7, up $15.8. Silver followed suit and added 60 cents to $19.36 an ounce, highest since October 1980. Both metals created new records as the US dollar fell to an all-time low against the euro on speculation that the US Fed Reserve Chairman, Mr Ben Bernanke, may indicate lowering interest rates. The United States currency touched 1.5047 per euro, its lowest since 1999, the year in which the single European currency was introduced.
No comments:
Post a Comment