The price of gold witnessed an unprecedented jump on Wednesday after the domestic and international market saw heavy stocking of the yellow metal following news of USA raising the debt ceiling. During trading on Wednesday, the price of gold rose by Rs 975 for 10 gm compared to the closing price on Tuesday. The price of gold had closed at Rs 23,375 for 10 gm on Tuesday and touched Rs 24,350 in the grey market on Wednesday.
The metal finally closed at Rs 23,955, a rise of Rs 580 over Tuesday’s closing. This is also the record price of gold.
Gold traded near an all-time high on speculation that the U.S. Federal Reserve may provide additional stimulus amid signs that the economic recovery is faltering, spurring demand for wealth protection.
Immediate-delivery gold, which jumped to a record $1,672.80 an ounce yesterday, was little changed at $1,663.45 at 9:35 a.m. in Singapore Spot gold has rallied 2.2 percent this week as investors sought haven assets on concern that debt problems in the U.S. and Europe will slow growth. Holdings in exchange- traded products rose to 2,178.467 metric tons yesterday, the highest level ever, Bloomberg data show.
Reports today and tomorrow may show initial U.S. jobless claims climbed last week, while the unemployment rate remained above 9 percent, according to Bloomberg.
SO I RECOMMEND MY CLIENTS TO GO LONG IN GOLD TROUGH GOLD ETF OR PHYSICAL GOLD WITH A LONG TERM VIEW