Gold breaches Rs 25K mark, may reach Rs 27,000 by Diwali
Gold continued its uninterrupted record-breaking rally and jumped to another historic high at the domestic bullion market here today on consistent buying from stockists and investors driven by bullish wave in overseas.
New Delhi: Gold Monday zoomed past the crucial Rs 25,000 per 10 grams level amid a worldwide crash in global stocks, prompting experts to say that the metal might even touch the Rs 27,000-mark by Diwali this year.
"If the global trend remains firm, domestic gold prices may touch the Rs 27,000-mark by Diwali," Bombay Bullion Association President Suresh Hundia told PTI.
Moving in tandem with global prices, gold prices rose by Rs 160 to Rs 25,295 per 10 grams in Kolkata; it went up by Rs 472 to Rs 25,291 in Chennai.
In the national capital, it spurted by Rs 460 to hit a new high of Rs 25,230. Similarly in Mumbai, it gained Rs 395 to Rs 24,930 per 10 grams.
In Delhi, the metal has gained Rs 1540 or 6.5 percent since August 2.
Similarly in the futures market, gold for April delivery rose by Rs 536 to Rs 25,978 per 10 grams, at the Multi Commodity Exchange.
Gold prices in the overseas market rose by USD 44.40 to USD 1,707.80 an ounce in Singapore due to downgrading of the US' credit rating by S&P and this led investors to shift their funds from equities and dollar to gold.
"Gold prices have breached the Rs 25,000-level. This will definetely affect the demand in volumes terms during the festive season," Hundia said.
He also said that gold import could also decline by 10-20 percent if the high price trend continues.