All that glitters is gold

Gold touched a record high in the bullion market on November 4 amidst reports of massive gold buying by the Reserve Bank of India from the International Monetary Fund. Standard gold and ornaments surged further by Rs 330 each to set a new peak of Rs 16,800 and Rs 16,650 per 10 gram, respectively.
(AFP photo )

The International Monetary Fund has sold 200 metric tonnes of gold to the Reserve Bank of India for about $6.7 billion, in a bid to increase the Washington-based financial institution's capacity to lend to poor nations. This would certainly help the multilateral lending agency to meet its target of stepping up financing to poor countries. The IMF, in pursuance of the decisions taken at the G-20 summit in London, had decided to sell about 403.3 tonnes of gold to shore up its finances so that it can lend money to the poor countries at concessional rates. (AFP photo )

The precious metal, which is on a rising spree for the last few days backed by seasonal demand and a firming global trend, added another Rs 330 per 10 gram today. However, experts feel that domestic bullion market is more co-related to international trend than any positive factor at home. (AFP photo )

The rising trend was boosted after reports that the precious metal in overseas markets reached an all-time high of USD 1,092.40 an ounce after the Reserve Bank of India bought 200 metric tons of gold from the International Monetary Fund, raising speculation more countries will follow suit. Trading sentiment also boosted after a London-based bullion group said the metal might climb to USD 1,181 an ounce by September 2010. The London Bullion Market Association survey conducted at the association's annual conference in Edinburgh said silver might also rise to USD 18.10 an ounce. (AFP photo)

Silver ready rallied by Rs 650 to Rs 27,200 per kg and weekly-based delivery by Rs 870 to Rs 27,070 per kg. Silver coins also touched an all-high level of Rs 33,300 for buying and Rs 33,400 for selling of 100 pieces. (AFP photo)

With this buy, the Reserve Bank of India now has the world's tenth largest gold holdings among central banks. Experts say that the RBI may move forward to accumulating more gold as the yellow metal is expected to shine in the years to come.(AFP photo)

India is the world's biggest gold consumer and the RBI's move indicates the central bank wants to diversify its holdings to protect against a slumping dollar.
(AFP photo)