Yellow metal touches Rs 8075

Standard gold gained Rs 140 on Friday and touched all-time high of Rs 8,075, mainly on the back of rising international prices.

Heavy demand from funds and speculative buyers, and rising crude prices were the major reasons for the global spurt. Crude prices touched four-month high of $67 per barrel today.

Gold for immediate delivery gained as much as $3.92 to $561.72 an ounce after trading at $560.40 in London in early morning trades. Gold, which is headed for its fourth consecutive weekly rise, has gone up 0.5 per cent in one week.

Experts see a correction as sharp as 12 per cent in the next five months owing to a decline in demand from jewellers.

However, the sky-high prices have hit the Indian demand hard as it has witnessed 90 per cent drop. Once the price softens, the demand would also increase, a trader said.

"The wedding season is round the corner and during the season no one bothers about prices. They buy at any price. Therefore, the demand is expected to perk up. This would have a bearing on international prices too," the trader said.

Gold .999 gained Rs 140 on Friday to close at Rs 8110. Jewellery demand in the country has surged almost 50 per cent in the first six months of the year, a trader said.

In the domestic market, the yellow metal had gained Rs 440 in January and Rs 655 from December 1. Investors' concern over inflation, too, is considered a reason for gold gaining acceptance.

"Unlike other investment options, gold is an internationally traded commodity which can be encashed at any point of time and anywhere in the world. Therefore, it would remain in the limelight for long," the trader said.