New Delhi: If your planning to go shopping for gold jewellery, here is something that could change your plans.
Gold prices in India have touched all time highs. Traders say that this is a direct impact of the falling rupee.
Bombay spot gold, 24 carat is currently trading at Rs 7235 per 10 grams. Ornament grade 22 carat gold is trading at Rs 7000 per 10 grams.
Gold prices depend more on international factors such as global interest rates, crude oil prices, demand-supply gap in the international market and value of the dollar.
Though India is the largest gold consuming country in the world, it is not able to control prices.
Silver also skyrocketed on heavy buying by stockists along with steep rise in the overseas prices and crossed the Rs 12,000 mark for the fist time in 11 months.
Last time the white metal had crossed the Rs 12,000 mark was on December 7, 2004 when it was quoted at Rs 12,175.
Market participants are more worried about the constant rise in the bullion prices in the last few weeks and indulged in increasing their stocks.
Investors bet the price of the bullion might extend this year's 7.5 per cent gain on demand from jewellers for the year-end festive sales.
Jewellers accounted for 68 per cent of global gold demand in 2004, according GFMS Ltd., a London-based research company.
Jewellers typically buy more gold in the second-half of the year during the wedding season in India and stock up for Christmas and New Year celebrations.
Financial markets are booming and this is the first time in history that bullion, stocks, forex and real estate are shooting up at the same time.
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