Monday, September 15, 2008

Gold spurts by Rs 195 per ten gram on higher global cues

15 Sep, 2008, 1923 hrs IST, ET Bureau
MUMBAI: Gold prices spurted by Rs 195 per ten grams to end at Rs 11,610 on the bullion market here today on fresh demand from stockists in view of festival season on the back of positive global cues and a weak trend in equity market.

Gold prices climbed more than two per cent in London after Lehman Brothers filed for bankruptcy protection, which spurred buying of gold as a safe haven from risk and knocking the dollar to a two-month low against the Yen.

However, the precious metals retreated from highs as oil prices slipped and selling of gold held by exchange-traded funds dented investor confidence.

Spot gold was quoted at USD 772.90/774.10 an ounce, up by USD 9.45 from Friday's nominal close in New York, but off session high of USD 784.90.

Gold and silver prices in Singapore jumped more than two per cent, with bullion gaining for a second day as Lehman Brothers' bankruptcy and anxiety over the stability of US financial markets spurred a rush toward safety.

Gold rose two per cent or USD 14.85 an ounce to USD 778.30 from Friday's close in New York.

Weak equity market also boosted gold prices, as some of the investors shifted their funds in gold as a safe-haven investment, a dealer said.

In the domestic market, standard gold (99.5 purity) rose by Rs 195 per ten grams to end at Rs 11,610 from Rs 11,415 and pure gold (99.9 purity) also shot up to Rs 11,680 from Rs 11,480.

However, silver ready (.999 fineness) dropped by Rs 75 per kilo to Rs 19,045 from Rs 19,120.

via: E.T

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