Rising gold prices maintain last decade's trend in 2012

Mumbai, Dec 24 Continuing with last decade's northward journey, gold prices breached the psychological Rs 30,000 level during 2012 to hit an intra-trade historical high of Rs 32,530 in November, amid sustained investment enquiries throughout the year. Gold that showed strong co-relation with international prices, continued its record setting feat and registered a huge rise of Rs 3,440 or 12.65 per cent till December 22, 2012, driven by all-round buying support. In the year 2011, it had spurted by Rs 6,605 or 32.09 per cent. Silver too was in great demand scoring impressive rise of Rs 7,220 or 14.17 per cent on December 22, over its last year-end close though remained below the intra-trade all-time high of 75,020 recorded last year (April 25, 2011). The bullion market witness a brief closure during March due to traders protest against the budget proposal to hike import duty and levy on branded jewellery, which was rolled back by the government later in April. The bullish sentiment was largely fanned by weaker dollar in global market and fears of inflation after Federal Reserve pledged to hold US interest rates near zero until the end of 2014. In Europe, gold prices rose on high euro amid hectic shot-covering as the precious metal once again returned to "Safe haven" tag. Gold visited USD 1,700 mark in June following bleak US employment data caused by eurozone crisis that spurred heavy demand. The atmosphere created by faltering growth data from across the globe raised hopes of further quantitative easing by Federal Reserve, prompting investors to go for gold and treasuries in global markets. Although, gold in the international market could not surpass its all-time record registered in September last year, the yellow metal in domestic market logged its all-time peak in the current year. This was due to, among other things, fall in rupee value which was trading nearly 3.7 percent lower against the US dollar on December 21, 2012. On the domestic scene, standard gold (99.5 purity) opened the year higher at Rs 27,205 per ten grams in January and surged to cross Rs 30,000-mark in June. It then rose to Rs 31,000 and Rs 32,000 levels in September before touching an all-time high of Rs 32,530 on November 27. It stood at Rs 30,630 on December 22, 2012, as against last year-end's close of Rs 27,190, showing a rise of Rs 3,440 or 12.65 per cent. Pure gold (99.9 purity) also resumed higher at Rs 27,335 per ten grams and shot up further to an all-time high of Rs 32,665 on November 26 before ending at Rs 30,760 on December 22, a surge of Rs 3,430 or 12.55 per cent. The silver ready (.999 fineness) commenced strong at Rs 51,090 per kilo and touched a high of 64,470 before finishing at 58,190 on December 22, exhibiting a gain of Rs 7,220 or 14.17 per cent.(PTI)