Precious metals gold and silver reached new heights on
Tuesday as investors continued piling into these metals with an aim to hedge
against potential inflation risks.
Spot gold jumped to $1,696.91 an ounce, the highest level
the yellow metal hit since mid-March. Though, it then eased slightly to
$1,695.46 per ounce.
The U. S. gold jumped 0.6 per cent to $1,698.20 per ounce.
Asia's physical market witnessed some scrap selling of the yellow metal as
prices reached a level of $1,700 per ounce.
Gold in India climbed to its all time high on Friday.
Following the international market rally on Federal Reserve Chairman Ben
Bernanke’s speech, gold for October delivery on the Multi Commodity Exchange
was trading 1.20 per cent higher at 31,342 rupees per 10 grams, after hitting a
high of 30,405 rupees earlier in the day.
Speaking about soaring prices of gold, a Singapore-based
dealer said, “People think prices will possibly keep rising and are quite
cautious on selling at this point.”
The U. S. silver futures contract climbed as much as 3 per
cent to hit four-&-a-half month high of $32.38 an ounce. However, later it
eased faintly to $32.27 an ounce.
Over the past two weeks, silver has jumped nearly 10 per
cent, while gold has climbed 4 per cent, despite gloomy growth outlook for the
global economy. Silver is known for more price volatility than gold. Silver is
more price volatility due to the relatively small size of the market plus
limited liquidity.
No comments:
Post a Comment