The price of gold reached Rs 60,000 per tola (11.664 grams) in the domestic market, today.
The price of the precious yellow metal shot up worldwide as its price continued to remain above $1,690 per troy ounce in the international bullion market on possible monetary easing by the US Federal Reserve to boost its economy.
The third round of quantitative easing means increased money supply to keep interest rates at near zero level which leads to inflation. To hedge against probable inflation, investors globally have revved up investment in precious metals.
Here, on August 17, 2012, the price of gold crossed Rs 50,000 per tola as the global bullion market saw the yellow metal surging to $1,775 per ounce on intra-day trading. The Eurozone debt troubles and the downgrading of the US credit rating by Standard & Poor's had pushed investors towards gold and other precious metals.