Rise in Gold Price

Gold prices continued their upward journey on Tuesday, rising 0.27 per cent to Rs 32,720 per 10 grams in futures trade, as speculators indulged in creating positions driven by firming trend overseas. At the Multi Commodity Exchange, gold for delivery in february shot up by Rs 88, or 0.27 per cent, to trade at Rs 32,720 per 10 grams, with a turnover of three lots. In 33 years, gold rose 32 times to reach Rs32,000

       Interestingly, what took the first three decades (1979-2009) to achieve in terms of rise in gold prices, the last three years (Sept 2009 to Sept 2012) matched it. Between 1979 and 2009, gold prices increased 16 times and reached Rs16,000 per 10 gram. In last three years, gold prices have doubled from Rs16,000 in September 2009 to Rs32,000 in September 2012.

On Thursday, gold price increased by Rs325 and closed at an all-time new high of Rs32,250 per 10 gram in Ahmedabad. In last two weeks, gold prices rose by Rs1,000 as it crossed the Rs31,000 mark in city.

Experts believe that price will continue to rise in India. “In last 33 years, gold shot up by 32 times. In last 12 years, gold shot up by more than six times and in last three years its prices have doubled. In history, the gold prices have stabled but have never seen huge correction. In coming years, price will touch level of Rs35,000 and Rs40,000, and soon,” said bullion trader and analyst Girish Choksi. He said that looking at the history of gold prices, investors should continue to put money in gold.

Market men said rally in gold futures was mostly driven by a firming trend overseas on speculation central banks from the US to China will increase stimulus as economic data disappoints, raising demand for the precious metal.