Chennai: All-round selling emerged in the bullion market as gold prices hit a record Rs. 30,000 for 10 gm in Mumbai on June 2.
“There is no demand for gold. People are selling scrap gold or booking profits on their investments. Some are even exchanging old jewelry for new,” said Prithviraj Kothari, president of the Bombay Bullion Association.
“The country has never seen gold at such high levels.” The price of gold (of 99.9 percent purity) increased by Rs. 905 to Rs. 30,030 (for 10 gm) on global cues. The yellow metal jumped by 4 percent on June 1, its biggest gain in three years, in London and New York.
Gold used in making ornaments (of 99.5 percent purity) increased by Rs. 890 to Rs. 29,895. Silver increased by Rs. 1,090 to Rs. 54,750 a kg.
At the global market, gold climbed 4 percent to $1,629.41 a troy ounce before settling at $1,621. It is still off its record high of $1,889.70 seen in August last year.
“Rupee depreciation is the key reason why gold prices have touched record levels,” said Kothari.