Ornamental Gold price rules high for third day

Chennai, Nov 4 : The price of ornamental gold touched a new high for the third successive day today.

Jewellery shops in the city witnessed a sharp decline in sales as the price of ornamental gold shot upto Rs 1,559 per gm this afternoon.

A sovereign of gold jewellery (eight gms), which was sold at Rs 12,104 on Monday was sold at Rs 12,240 yesterday. Today, the price of a sovereign of 22 carat gold stood at Rs 12,472 with price of a gm of gold fixed at Rs 1,559 this morning.

On a single day, the prices of ornamental gold registered an increase Rs 232.

When contacted, Mr N Ananthapadmanaban, Chairman of Gold Club of Chennai said Gold prices have witnessed a spurt after Reserve Bank of India (RBI) purchased 200 tonnes of the yellow metal from International Monetary Fund (IMF) two days ago.

The market has become very bullish after RBI purchased gold from IMF, he said, adding the market would continue to be volatile for the next one week, before it gets stablised.

After India, Central Banks of other countries might also try to purchase gold from IMF out of panic and prices of gold continue to fluctuate atleast for the next one week, he said.

--UNI

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