Everything seems to be going right for the yellow metal and, of course, for investors exposed to it.
The precious metal jumped by Rs 250 to touch a new peak of Rs 16,220 per 10 grammes in the bullion market in Delhi which is its new all-time high.
Gold also rallied to an 18-month high today in Europe, breaking through the $1,018 barrier and was looking good to threaten the all-time high of $1,037, on the dollar’s slide to 2009 lows against the euro that boosted interest in the metal, which in turn led to the increase in the buying of gold.
An increasingly confident economic scenario is making people sell dollars and leading them to invest in stocks or commodities, causing gold in particular to rise to all-time highs in many areas across the world.
Stock markets across the globe are not yet near their all-time highs, but they have certainly rocketed to new highs in recent weeks too.
Gold may also be of interest to investors as rising economic graphs may well fuel inflation. In India, where the low base effect is set to end in September, will see a gradual rise of inflation into positive territory, from its negative current perch. RBI Governor D Subbarao sees it as a threat and has already gone on record to say that he would like to deal with it by shutting the taps of the stimulus measures before it gets out of hand.
Silver and platinum climbed to many-month highs in its wake too as it hit a 13-month high of $17.27 an ounce in Europe.
In India, silver jumped to its all-time high of Rs 31,800 (per 100 pieces).
Spot platinum rose to a peak of $1,333.50 an ounce, its highest since September 2008.
With the marriage and festival season still to start in India, expectations are that bullion will see further rise to even greater heights.
It is worth mentioning that over the last week, traded volumes of gold ETFs in India have virtually doubled on the back of the interest aroused by the huge spike in the price of the yellow metal. Not only volumes, but also the traded turnover on exchanges has registered a similar increase.