Gold at all-time high as stocks tank

Standard gold (99.5 purity) shot up by Rs 145 per 10 gms to end at Rs 24,170 from Rs.24,025

Gold sparkled at an all-time high rate of over Rs 24,500 per 10 grams in Kolkata Friday as the metal’s appeal as a safe haven increased amid a worldwide crash in other investment options — equities and the dollar. Market players domestic prices were influenced by firm cues in global markets,where gold climbed to an all-time high of $1,683.30 an ounce in New York last evening,amid fears of recession in the US and debt problems in the Euro zone.

Moving in tandem with global prices,gold prices rose by Rs 160 to Rs 24,535 per 10 grams in Kolkata; it went up by Rs 210 to Rs 24,455 in Chennai. In the national capital,it spurted by Rs 70 to hit a new high of Rs 24,350. Similarly in Mumbai,it gained Rs 135 to Rs 24,280 per 10 grams. Good domestic demand ahead of the festive and the mariage season also helped it surpass all records,they added.

In futures trading at the Multi Commodity Exchange (MCX),gold for delivery in October shot up by Rs 224,or 0.90 per cent,to a new high of Rs 24,289 per 10 grams,with a business turnover of 3,431 lots.

Story continues below this ad

Diversion of investments from melting equity markets towards bullion market,too,had a positive impact on the gold’s sentiments, Rakesh Anand,Delhi-based leading jeweller,said.

Gold still has the potential to rise in the coming days, he added.

Commenting on spurt in global prices,analysts said investors rush to park funds in gold,considered safest haven,especially in times of distress.

Meanwhile,the BSE benchmark Sensex plunged by 387.31 points,or 2.19 per cent,to close at an over 14-month low of 17,305.87. During the session,it dipped below the 17,000-mark by losing over 702 points.

Story continues below this ad

Asian stocks tumbled with key indices in China,Hong Kong,Japan,Singapore,South Korea and Taiwan ending down by 2.15 per cent to 5.58 per cent. European markets too were down in afternoon deals. The CAC was down by 0.34 per cent,the DAX by 1.73 per cent and the FTSE by 2.18 per cent.

In the US,Dow Jones and Nasdaq had slumped by 4.31 per cent and 5.08 per cent yesterday,biggest falls in over last two years. Another investment option,the US dollar,which moves in opposite direction to gold,lost against its major rivals. The dollar traded at 78.67 yen,down from 78.93 yen in New York. The domestic currency,however,dropped by another 20 paise to close down at a more-than-five-week low of 44.74/75 against the US dollar.

Meanwhile,oil prices fell in the Asian trade after plunging more than 5 per cent overnight as the weakening global economy and Eurozone debt crisis threatened energy demand.

New York’s main contract,West Texas Intermediate light,sweet crude for delivery in September,was down 92 cents to $85.71 a barrel in morning trade after plunging $5.30,or 5.8 per cent,in US trade Thursday,the lowest closing price for WTI since February.