Gold prices soar to lifetime high in India

Mumbai, Dec 2

Gold prices rose to a lifetime high in India amid the peak wedding season and rising international rates of the precious metal.

Chennai led the charge with the price soaring to Rs 64,530 per 10 gm for 24 carat gold in morning trade.

The price of the precious metal in Mumbai, Delhi, Bengaluru and Kolkata was hovering at Rs 63,760 per 10 gm, which was Rs 810 higher than the previous day.

Gold prices in the international market have also shot up to a seven-month high as spot prices gained 1.6 per cent to $2,069.10 per ounce on Friday.

India imports a large quantity of gold and rising global prices have a direct impact on the domestic market.

Gold prices have been rising in the global market as the dollar has continued to depreciate against a basket of major currencies and is currently close to a three-month low which makes gold cheaper to buy in other foreign currencies.

There are also growing expectations that the Federal Reserve is likely to cut rates in the coming months.

Expectations of low interest rates makes financial instruments less attractive for investors compared to gold which is considered a safe investment.

The demand for gold in the domestic market remains firm amid the marriage season as the precious metal is gifted to brides and grooms in large quantities.