Gold prices zoom to 6-yr high

Gold is glittering once again. Global gold prices on Friday crossed to touch a new high of $335.65-336 per troy oz levels, almost $10 up fro...

Gold is glittering once again. Global gold prices on Friday crossed to touch a new high of $335.65-336 per troy oz levels, almost $10 up from previous levels.

This is a five-and-a-half year high in euro terms and around four-year high in US dollar terms. The metal has gained 20 per cent this year. In the Mumbai bullion market, the prices at around Rs 5,450 per 10 gm were considered to be a six-year high.

The strengthening of the euro against the weakening US dollar as also the impending fears of war between US and Iraq fuelled the bullish sentiment in a relatively thin market. The US dollar fell to its weakest in almost three years against the euro and dropped against the yen on concern the pace of a rebound in the US economy is faltering.

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Reports also said that missiles found in the intercepted North Korean ship to Yemen was possibly for the use of terror attacks.

Also, traders and institutional investors, expecting the gold prices to go down from earlier levels of around $325 levels had gone short but were caught unawares with the surging gold prices and accordingly were said to be covering their short positions further fuelling to strengthen the strong gold prices.

In the domestic market, standard gold opened sharply higher at Rs 5400 and skyrocketed on heavy buying spree and closed at a six-year high of Rs 5450, revealing a handsome gain of Rs 110 over Thursday’s close of Rs 5340.