Gold vaults to Rs15,131 per 10 gm as shares wilt

17 February 2009

Gold prices in the country zoomed to record levels today weighed down by weak stock markets and a flat interim budget that offered little help to the struggling industry.

Buyers were forced to postpone purchases even as they grappled with record prices above Rs15,000 per 10 gm. In fact, there were more sellers of scrap gold than buyers for jewellery, traders said.

The benchmark April contract for gold rose 2.9 per cent and hit an all-time high at Rs15,131 per 10 gm on the Multi Commodity Exchange of India Ltd (MCX). The contract was still above Rs15,000 at around Rs15,107 per 10 gm in afternoon trading.

Gold gained almost 3 per cent in the last week alone and by around 30 per cent over the pat three months.

Analysts expect gold to hit Rs16,000 per 10 gm soon as investors across markets turn to the safe-haven asset.

On the stock market, the benchmark BSE Sensex extended losses to 3 per cent on Tuesday afternoon after investors stopped buying in an uncertain market.