Gold starts cooling Down

The price of gold has plummeted almost by Rs 3,000 in a week after hitting the historic high last week.
The precious yellow metal today eased back to Rs 19,505 per 10 gram ( Rs 22,225 per tola) from last Monday's record high of Rs 21,435 per 10 gram (Rs 25,001 per tola) in the domestic market.
"It fell by Rs 2,875 per tola (11.664 gram) in comparison to last Monday," a gold trader said, adding that the price after hitting the roof has come down.
The domestic market has felt the heat of deepening woes in the global financial system. "However, the domestic market has been forced to control the gold price as the selling pressure increased making the traders nervous," said another gold trader.
Continuous weakening of dollar, rising crude price and economic slowdown in the US, have pushed the price of precious yellow metal up.
Apart from that end of wedding season and nearing Constituent Assembly election have also hurt the domestic gold traders.
Similarly, silver price has also come down to Rs 380 per 10 gram from Rs 400.
While international markets tumbled day-after-day in the first three months of 2008, gold climbed to an historical high of $1,032 an ounce and shows signs of reaching greater heights in the near term.
"When all else looks risky, gold flourishes," experts claim adding that in a credit crunch, cash is deemed to be king. In which case, gold owned outright has just been crowned emperor.
Used as money for more than 3,500 years, gold thrives on crisis and investors' fears. Two of the biggest drivers — a rapidly depreciating dollar and growing US inflation — have helped catapult the price of gold more than 60 per cent over the past two years.