Gold hits a 28-year high in London, looks at Rs10,000/10 gm in India news
19 September 2007

Mumbai: Gold prices rose to the highest in 28 years as a falling US dollar lifted its safe-haven appeal. Other precious metals also rose aided by speculative purchases.

The steep rise in overseas prices buoyed Indian gold to a six-month high of Rs9,610, up Rs100 from the previous day. A week dollar also aided sentiment in the domestic market.

In London, spot gold rose as high as $739 an ounce, its highest since January 1980, on short-covering and technical buying. It later dipped to $737.15/737.85 an ounce, still higher than the $734.20/735.00 New York close the previous day.

Platinum hit its highest level since early May and palladium touched a five-week high.

Platinum rose to $1,338/1,343 an ounce from $1,323.40/1,330.40 in late New York. It hit an intra-day high of $1,340 on Friday - its highest since early May.

Silver rose to $13.57/13.62 an ounce from the $13.36/13.41 New York close the previous day, having risen as high as $13.63 an ounce - its best level since early June.

Palladium rose to $339 an ounce, its highest since 16 August, before dipping to $338/343 an ounce, still higher than $336.40/340.40 in New York.

Gold hit a historic high of $850 in January 1980 amidst a host of factors like strong oil prices, Soviet intervention in Afghanistan prompted investors to stock the precious metal.

Investors booked profits on a rally that has added more than $90 an ounce to the price of gold in a little over a month.

Analysts say gold''s fundamentals look strong, with gold miners globally reducing their hedges.

The United States has cut interest rates and consumption in main buyer India expected to reach more than 1,000 tonnes this year, they point out.

India''s demand for gold reached 715.5 tonnes in 2006, the World Gold Council said.

The greenback hit a 31-year low against the Canadian dollar and edged near a record low against the euro as investors dumped the US currency after the Federal Reserve cut base lending rate by 50 basis points earlier this week.
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Gold hits a 28-year high in London, looks at Rs10,000/10 gm in India