All the way over in India, the marriage season is looming—and with that comes plenty of gold-buying. The blend of factors has caused gold to soar above the INR 32,000 mark (about $577) for the first time ever. Over the past two weeks, gold increased by INR 1,555 ($28) per 10 grams.
Heightened expectations that the European Central Bank would declare unlimited purchases of government bonds as a way toward lessening the economic stress on debt-laden nations in the Eurozone also helped gold rise. As the Indian marriage season gets into full swing, gold is expected to go even higher.
DNA India reports:
“Gold is on upward march and likely to touch new peaks in the coming days for festivals…,” All India Sarafa Association general secretary Surender Jain said, adding that a firming global trend and weak rupee will make imports of the metal costlier.
Since India depends mostly on imports for its gold, there is a close relation between global bullion trends and prices within the subcontinent. Over in London, gold gained 0.96 percent to hit $1,709.70 per ounce on Thursday . Silver also gained 1.8 percent to touch $32.85 per ounce, which is the highest level since early April of this year.