New Delhi, Aug. 17 (PTI): Gold today scaled an eight-month high of Rs 31,860 per 10 grams in Calcutta on strong buying trends after stocks and money markets melted.
Traders said the upcoming festive and marriage season might further fuel demand for the precious metal, pushing prices higher.
Gold rose by Rs 700 to Rs 31,860 in Calcutta. In Delhi, it gained Rs 515 to Rs 31,525 per 10 grams — a level last seen on December 18, 2012. In Chennai, gold climbed Rs 695 to Rs 31,505 and in Mumbai by Rs 640 to Rs 31,470 per 10 grams.
Yesterday gold had jumped the most in two years by Rs 1,310 because of a meltdown in stocks and money markets.
According to traders, the rupee hitting a record low of 61.65 per dollar and investors shifting funds from melting equities to the bullion supported the uptrend.
“Speculative buying picked up in anticipation of a further rise in prices of precious metals in the coming days once the festival and marriage season starts,” said Delhi-based bullion merchant Rakesh Anand.
The rally in precious metals sparked ever since the rupee plunged to an all-time low, raising fears that the dollar-denominated metal would become costlier and put pressure on supply after the RBI prohibited import of gold coins.
“Melting equities and depreciating rupee have left no other option for the investor fraternity but to park their funds in bullion,” said Surender Jain, vice-president of All India Sarafa Bazar.