| Continuing its charge, gold closed at an all-time high of Rs 11,845 per 10 grams on speculation of a further interest rate cut in the US and the ongoing disruption in supply from South Africa, the world's second largest producer of the metal. |
| Standard gold in Mumbai opened firm at Rs 11,825 per 10 grams in line with the historic price rise in global markets. In the afternoon, when the price eased slightly (Rs 10-15), a small quantity was traded by need-based buyers who booked to make jewellery for the ensuing wedding season. |
| Otherwise, buyers remained absent from physical trade with the hope that the price will cool down once the recessionary fears in the US settle down. |
| Standard gold closed at Rs 11,845 per 10 grams, a gain of Rs 135, while pure gold closed at Rs 11,895 per 10 grams up Rs 135 as well from the previous day. The probable cut the US Federal Reserve is likely to have a negative impact on global economic growth. |
| Therefore, investors are scampering after gold as they percieve assured returns on investment, paying little attention to other asset classes, including real estate and stocks, which are highly volatile. |
| Gold investors have got returns of 35 per cent in the last one year, as compared with 15-20 per cent on other asset classes. Gold prices have surged 45 per cent since January 2006. |
| According to traders, despite fundamentals remaining strong, jewellery buyers are staying away at these price levels. "Prices are rising purely on speculative buying," a local trader said. |
| Significantly, major gold mines in South Africa, including AngoloGold Ashanti, Gold Fields and Harmony and Anglo Platinum, halted production last week because of electricity shortage in the country. S Africa is suffering its worst power shortage in decades. |
| "High prices have put off buyers. There is no buying, literally," said Bhargav Vaidya of B N Vaidya & Associates. A resistance at Rs 12,000 per 10 grams was on the cards, he said. |
| Meanwhile, gold futures hit a historic high on the Multi Commodity Exchange (MCX), the country's largest commodity bourse, for the December 2008 contract, surpassing the psychological barrier of Rs 12,050 per 10 grams for the first time and closed at Rs 12,099, a gain of 0.89 per cent. |
| Gold for delivery in February, however, witnessed little less volatility and closed with a gain of 0.32 per cent at Rs 11,765 per 10 grams after hitting a record high of Rs 11,800 per 10 grams. |
| The metal has also gained support from the weakness in the dollar. |
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