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Yellow metal surges seven-month high,residents fume

Breaking all previous records,gold touched a seven-month high today. The metal was sold between Rs 15,200 and Rs 15,700 per 10 grams for 24 carat gold ornaments.

Written by Amrita Chaudhry | Ludhiana | Published: February 18, 2009 1:46 am

Though gold buyers in city ignored the wedding season and postponed purchases,the price of the metal spiralled to Rs 15,700 per 10 grams on Tuesday

Breaking all previous records,gold touched a seven-month high today. The metal was sold between Rs 15,200 and Rs 15,700 per 10 grams for 24 carat gold ornaments. The prices varied depending on the old stocks that the dealers had with them.

Ashim Nagpal,owner of Tanishq franchise in the city said,“We trade in 22 carat and the rate today is Rs 14,470 per gram. For 24 carat gold ornaments,it is Rs 15,780 per gram.”

Trying to reason out the price hike,Nagpal said,“It is quite surprising to see the price of gold spiraling northwards during global recession. Some theories are doing the rounds like a spurt in demand for gold from the Gulf nations where people want to replace a weak Dollar with the yellow metal. The second theory is that the gold cartel is playing its game by hiking the price for the wedding season ahead.”

This price rise,however,has had a dampening impact on the market.

Amarjeet Singh,another gold dealer,said,“Despite the wedding season,there are no buyers in the market. People who have to buy gold have cut down their budgets drastically. Earlier,people used to demand the metal in huge quantities,like 40 tolas,but now they say their budget is Rs 2 lakh and ask us to give them the best deal. The situation is dismal.”

Navneet Singh,a private banker,echoes the same sentiments. She says,“It is my brother’s wedding and going by tradition,I should gift a gold set to my bhabhi. But then,the gold prices are so high that I had to settle for earrings. I am really embarrassed but things are way off the mark for our pockets.”

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