Gold hits all-time high price

Mumbai, Sept. 8: Gold’s rally to above $1,000 an ounce on Tuesday threatened to hurt demand in India during the busy festival season, but fears of further rises could also ignite panic buying from jewellers in the world’s top consumer.
Gold rose above $1,000 an ounce for the first time since February as investors sought a safe haven due to the dollar’s weakness and worries about the sustainability of the global economic recovery.
Spot gold rose to $1,007.45 an ounce, its highest since March 2008. US gold futures for Decem-ber delivery rose to $1,009.4 an ounce, before easing to $1,006.80 an oun-ce, versus Friday’s close at $996.70 an ounce.
India’s gold demand normally rises between August and October, when consumers buy bullion for auspicious reasons to celebrate major festivals.
“Demand will fall more,” Mr Suresh Hundia, president of the Bombay Bullion Association, said. “Only those who are short will buy at these prices.”
“During the festivals, people will pick up what their requirement is. There won’t be an excess of buying,” said Mr Prithviraj Kothari, the director at Riddisiddhi Bullions.
India, which accounted for more than 20 per cent of global demand for gold jewellery in 2008, has seen a steady decline in demand since bullion first powered to $1,000 an ounce in February, which also sent local futures to a record high at Rs 16,040 per 10 grams.