India’s gold prices hit record high

Gold prices in India hit a lifetime high on Thursday, in line with global trends, as stockists and investors bought up the metal, traders said.

India’s domestic gold prices hit 30,699 rupees per 10 grams at the local market, as international gold prices touched their highest level in three months amid continued concerns over the eurozone.

“International and domestic factors are both at play,” said Anand James from Geojit BNP Paribas Financial Services.

“There is anticipatory seasonal buying by stockists on expectation of purchases in coming months, and a bit of investment-led buying,” he said.

Investors tend to turn to the precious metal as a safe haven during uncertainty, while the stockists anticipate family buying during the festive and marriage season, which runs from September to December.

Currently retail gold purchases remains low, with consumers delaying buying in hope of a correction in prices soon, traders said.

“Demand is very poor at the moment. There are no buyers due to the high prices,” said Haresh Kewalramani, director with the Bombay Bullion Association.

Global demand for gold fell to its lowest level in two years in the second quarter ended June, the World Gold Council said, owing to less buying in the main markets of India and China, despite rising demand from central banks.

India and China, which have both been battling high inflation, account for about half of the world’s gold demand combined, and China is forecast to overtake India as the market leader by the end of the year.