M A I N   N E W S

Gold scales peak 31K
Sanjeev Sharma/TNS

New Delhi, August 23
Gold prices today surged to an all-time high of Rs 31,035 per 10 gm largely on the back of international factors, including the hope for a fresh fiscal stimulus for the US economy. Indian consumers have, meanwhile, turned cold to the yellow metal and the demand is down by 60-80 per cent.

The minutes of the US Federal Reserve meeting suggested that a new stimulus package called QE3 was on the way. This led to weakness in dollar, while gold vaulted to its four-month high.

Mukesh Kothari, Director, Ridhi Siddhi Bullion, said the dollar was weak since QE3 was coming. This would put more money in the market and most of it would flow into commodities. It would not be surprising if gold crossed Rs 32,000-mark for 10 gm, he said.

Rakesh Saraf, President, Karol Bagh Jewellers Association, said the domestic demand was down by 60 per cent.

Gold has been an outperformer among the asset classes and has doubled over the past three years and tripled over the past five years. A piece of jewellery that cost Rs 40,000 a couple of years ago now comes for Rs 1.5 lakh, making it unaffordable for the masses.