MUMBAI, London, JUNE 29: Living up to its reputation, gold is proving to be a safe haven when inflation is soaring and stock markets are taking a beating on a daily basis. While the Sensex fell by 19.40 per cent to 13,802 from 17,125 in
the last two months, gold has soared by 11 per cent in the same period.
Inflation, on the other hand, has crossed the double digit and hit the 11.4 per cent last week. Gold prices ended at more than a one-month high last week on the back of rising inflation and weak stock markets. Standard gold (99.5 purity) closed at Rs 12,825 per 10 grams on last Saturday as against Rs 11,550 on April 25, 2008, a gain of Rs 1,275 or 11 per cent in the last two months. Pure gold (99.9 purity) also flared up to Rs 12,885 per ten grams from Rs 11,610.
Silver (.999 fineness) too rose Rs 1790 per kilo to end at Rs 24,635 from Rs 22,845 in the last two months.
"Many people are considering gold as an investment avenue," said BSE dealer Pawan Dharnidharka. Traders and retail investors turned their attention to these safe-haven metal as a good investment against the rising inflation, weak dollar overseas and falling global equity markets.
Gold prices in Mumbai, a leading bullion market in the world, are influenced by overseas prices. Gold ended near a one-month high in overseas market on Friday as record oil prices stirred inflation fears and wreaked havoc on global stock markets, prompting investors to pour funds into bullion. Gold climbed to $930.40 an ounce, its highest since May 27, and was at $927.20/928.20, well above the $912.60/913.60 an ounce it was quoted late in New York on Thursday.
Analysts said gold could rise further in the short term.
MUMBAI, London, JUNE 29: Living up to its reputation, gold is proving to be a safe haven when inflation is soaring and stock markets are taking a beating on a daily basis. While the Sensex fell by 19.40 per cent to 13,802 from 17,125 in
