Gold zooms to Rs12,040 per 10 gm as dollar breaches Rs40-mark
20 Feb 2008
Mumbai: Gold prices surged to a record Rs12,040 per 10 gm in the bullion market helped by aggressive buying and the rupee's slide against the US dollar.
The US currency crossed the Rs40-mark for the first time in five months – gaining 21 paise against the rupee – on sustained dollar demand amidst a supply shortfall.
Standard gold and ornaments shot up by Rs200 each to Rs12,040 and Rs11,890 per 10 gm respectively. Sovereign too was up Rs100 at Rs9,600 per piece of eight gm.
Gold prices gained on heavy buying by jewellery fabricators and retailers following a firm trend in global markets. In Asia, the yellow metal rose to a three-week high of $930.55 an ounce last night. Gold set a record peak at $936.92 on February 1.
The rupee opened weak at 39.95/97 a dollar from yesterday's close of 39.90/91 a dollar. In brisk activity, the domestic currency was quoted at 40.1400/1450 a dollar in late deals.
The exchange market continued to witness heavy demand for dollar from importers as well as banks.
Continued FII pullout from equity markets also weighed on the rupee sentiment
The Indian unit had been ruling below 40 levels since September 20 last year.
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