The price of gold has surged to another record, reaching a new high today in the domestic market at Rs 59,195 per tola (11.664 grams).
The bullish pressure in the international market caused the price of the precious yellow metal to scale by almost Rs 1,600 in a week. Last Sunday, a tola of gold was priced at Rs 57,600. The last three trading days of the bullion market had seen the yellow metal’s price scaling new heights as the international bullish pressure pushed its price up.
In the international bullion market, the price of gold reached $1,670 per troy ounce after the US Federal Reserve signalled another bout of quantitative easing unless the economy improves considerably.
A new round of federal stimulus means printing money, so the fear of inflation has compelled investors to run for the most trusted inflation-hedge – gold. Moreover, the drop in the dollar index is also helping the price of gold rise to newer heights.