The Telegraph
Since 1st March, 1999
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Gold sizzles at home, hits 7-year high overseas

New Delhi, Sept. 22 (PTI): Gold prices rallied across the country today on heavy purchases by stockists triggered by a bullish trend in overseas markets and registered significant gains between Rs 125 and Rs 50 per 10 grams.

Delhi recorded the highest gain in gold, rising by Rs 125 at Rs 5,825 per 10 grams followed by Calcutta by Rs 70 at Rs 5,930. In Chennai, the initial gain was Rs 80 but reduced to close Rs 55 higher at Rs 5,880 while in Mumbai it shot up by Rs 60 but reduced to close Rs 50 higher at Rs 5,830 per ten grams respectively.

Trading activity on the domestic bullion markets was bolstered as it surged by almost $10 in international markets to touch a 7-year high at $386 an ounce, a level last seen on February 5, 1996.

The rise in the price of the yellow metal in international markets was attributed to the weakening of the dollar, which made dollar-priced metals cheaper when bought in regional markets.

Stockists were creating positions to meet festival demand beginning this week-end.

The demand for more flexibility in exchange rates at a meeting of the IMF and the World Bank in Dubai boosted gold prices to some extent.

Reports also suggested central bankersí talks on a possible Washington Agreement renewal on the sidelines of the Dubai meetings.

The gold pact among European central banks, which will expire in September 2004, limits total gold sales among the banks at 400 metric tonnes each year for a period of five years from 1999.

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