Gold soars to record high of Rs 6,000

All that glitters now seem to be the yellow metal. Gold prices hit a record high of Rs 6,000 per 10 grams on Wednesday as global prices surg...

All that glitters now seem to be the yellow metal. Gold prices hit a record high of Rs 6,000 per 10 grams on Wednesday as global prices surged on war fears, bringing professional bullion trade in the country to a standstill and drawing queues of sellers at jewellery shops.

In the global market, panic buyers resorted to heavy buying of the yellow metal at all levels as a safe investment and as a result, it rose to 6-1/2 high in London to touch $387 an ounce, level not seen since Septmber 1996, analysts said.

Another reason for the steep rally in prices was that foreign diplomats in Iraq were leaving the country as the US and UK started a final diplomatic push to rally support for a possible war, they added. In the local market, standard gold started at an all-time high of Rs 6000 and maintained that level on continued support, showing a whopping rally of Rs 85 over yesterday’s close of Rs 5915.

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Ten-tola gold bar (.999 purity) also opened at a new high of Rs 70,350, but eased marginally to end at Rs 70,300, still the highest level ever for a gold biscuit. Ready silver (.999 fineness) also resumed on a firm note in line with gold at Rs 8305, but fell back on fresh selling pressure and closed at Rs 8295, still showing a sharp rally of Rs 70 over the previous close of Rs 8,225.

“The entire trade, except the scrap business, has come to a standstill today as everyone is watching the moves by US,” said a gold industry source.