The first day of the week saw precious yellow metal price jump by Rs 900 per tola to break through another record at Rs 59,900 per tola (11.664 grams) in the domestic market, as investors globally are flocking to buy gold to hedge against possible inflation.
The price of the yellow metal surged past $1,690 per ounce in the international bullion market as US Federal Reserve (Fed) chairman Ben Bernanke expressed concerns over the employment situation in the US, signalling the need to take further action to boost the economy.The expectation regarding monetary easing by the US central bank has pushed the price of gold up by Rs 700 in a week. Along with gold, the price of other precious metals has also increased. Silver also reached Rs 1,145 per tola in the domestic market.
Last August, the yellow metal had reached the highest level ever at $1,900 per ounce after rating agency Standard & Poor's downgraded the credit rating of the US.
The appreciation of the US dollar has also been pushing the price of gold up in the domestic market.