TOKYO (Commodity Online): Gold is set to cross $1,200 per ounce mark this week itself if you track the movements this week.

The bullion market saw the gold prices at record high twice this week. This was helped by fear of dollar’s fall and Indian central bank’s deal with the IMF wherein it bought 200 tonnes of gold triggering speculation over further fall in dollar.

And, now there are reports that India’s Reserve bank of India is all set to buy another 200 tonnes of gold from the IMF which is aimed at boosting the country’s foreign reserves.

Even though India’s prime minister Manmohan Singh, who is on a US trip now, said he expects the dollar to bounce back, the country’s central bank has given enough hints that the country doesn’t bank much on the dollar now and it wants its reserves in gold. India’s earlier purchase of the IMF gold cost it $6.7 billion and the further deal may cost more.

Gold rose to a record high above $1,175 on Wednesday, the second time this week it has notched up a new high on solid investment sentiment and expectations of more gold buying by the public sector.

The purchase by the central bank sparked a rally that lifted the precious metal to successive record highs with it gaining about 12 percent this month alone.

The purchase was part of a planned sale of 403.3 tonnes by the International Monetary Fund. Russia, Sri Lanka and Mauritius have also since announced gold acquisitions.

According to analysts, reports of India’s move to again buy IMF gold will push the gold prices above $1200 per ounce this week itself.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook