24 August 2011

Gold prices sky rocket; imports may crfossd1000-ton mark

Gold prices zooming past Rs28,000-mark has not deterred investment demand for the yellow metal, gold imports are likely to cross the 1,000-tonne mark this year to keep pace with rising demand, say analysts.
Following the US sovereign debt downgrade coupled with the new threats originating from Eurozone economies, the yellow metal had been on fire. It rallied a massive 14 per cent this month alone as investors junked stocks and turned to gold as a safe haven. The last time gold surged over 14 per cent in a month was in 1999.
The domestic market saw gold scale a new high of over Rs 28,150 per 10 gm in futures market, while in global markets it hit a record $1,877 an ounce last Friday. The domestic market also saw gold rise Rs1,310--the highest ever single day gain according to analysts.
Analysts say the total gold ETF investment in the country had reached 15 tonne which was expected to double over a year.
India, the largest gold consumer, had imported a hefty 958 tonne in 2010, according to the World Gold Council (WGC) data. The first six months of this year, had already seen the import cross 553 tonne, WGC said.
The jewellery demand was meanwhile, expected to fall as people looked to sell to take advantage of high prices
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