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Journalism of Courage
Riding on a massive rise in international gold prices, the yellow metal prices rose on Tuesday to breach all previous highs and touched an all-time high of Rs 6,495 per 10 grams on the bullion market here on Tuesday. Pure gold was quoted at Rs 6,530.
The previous highest level for standard gold and pure gold were Rs 6,490 and Rs 6,525, respectively. Standard gold (99.5 purity) resumed at a new high of Rs 6,495 as against Rs 6,480 quoted during the special Diwali muhurat trading on Friday.
‘‘Indians continue to buy gold irrespective of the prices,’’ says Mumbai jeweller Bharat Mehta. ‘‘The ongoing wedding season and Diwali festival were the two main drivers of gold prices,’’ he added. ‘‘We are not expecting any let up in demand.’’ India is world’s biggest gold consumer with over 800 tonnes of gold sold every year in the country.
In the Asian markets, gold, however, traded below a 16-year peak after a US dollar rebound took the shine off the metal’s safe-haven appeal, and as a buildup of long positions in New York raised fears of heavy liquidation.
Spot gold was at $436.25/437.00 an ounce, little changed from $436.45/437.20 in New York late on Monday.
Some dealers said gold could drop below immediate support of $432 an ounce if investors liquidate large speculative net long positions in New York.
The weekly commitments of traders data from the Commodity Futures Trading Commission said the long position in COMEX gold increased to 117,853 lots in the week through November 9, from 111,437 contracts a week earlier.
—(With agencies)
