Mumbai: Gold maintained its record-breaking stride and rose further to close at a new high of Rs 7,415 on
the Bullion market on Saturday.
Standard and pure gold started at Rs 7,410 and Rs 7,450 respectively on persistent stockists' buying as the metal continued to be in high demand due to the wedding season.
In Asian trading on Friday, gold rallied on expectations that the metal would reach $500 an ounce level amid rising demand from jewellers in India and Europe.
Gold prices reached an 18-year high on Tuesday, and jewellery shops are desperate for new customers to maintain demand, dealers said on Thursday.
This reflects the role gold is acquiring once again as a financial and insurance instrument.
When viewed from this perspective, the causes of this bull run becomes obvious. For one, most hedge funds have begun to liquidate their exposure to energy stocks in the wake of crude oil prices sliding, and moved into gold.
This reflects a new linkage between the prices of crude oil and gold. Gold doubles as an instrument of savings for the common man and an investment avenue for retail investors, who hope to exchange it subsequently with more units of money than they paid to acquire it.
Silver also firmed up in line with gold. Ready silver (.999 fineness) also opened firm at Rs 12,290, showing a gain of Rs 35 over the previous close of Rs 12,255.
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