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.
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