Gold zooms due to spectacular rise in overseas mkts
New Delhi, Jan 13 (PTI) Gold prices zoomed on the bullion market today on brisk buying by stockists triggered by a spectacular rise on the overseas front, recording a handsome gain of Rs 190 at Rs 9175 per ten grams.In line with the general trend, silver and silver coins registered a significant rise on all round buying support.Trading activity picked up after reports that the precious metal had recorded a significant gain in two months in New York last night, as a decline in the value of the dollar boosted the appeal of gold as an alternative investment.Gold, sometimes moves in the opposite direction of the dollar, which fell 6.9 per cent last year against a basket of six major currencies, including the euro and the British pound. Gold rose 23 per cent in 2006. The dollar today fell from a seven-week high against the euro.In overseas markets, gold futures for February delivery rose 14.40 dollars, or 2.4 per cent, to 628.30 dollars an ounce, a biggest gain since November 9.Marketmen said the precious metal prices spurted even as the physical demand in domestic market was almost nil due to off marriage and festival season.They said Exchange-traded funds linked to the price of the metal that now trade in New York, London, Singapore, Mexico and France have already attracted a combined 11 billion dollars in investments since November 2004.Traders said there were reports that the council plans on starting a similar fund in India, Italy, Germany, Belgium and the Netherlands. PTI
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