India gold hits record high; 21,000 rupees eyed

Tuesday, November 30th, 2010 | Finance News

photo

MUMBAI (Reuters) – India's gold benchmark futures on Wednesday struck a record high of 20,625 rupees per 10 grams, tracking firm global markets. Analysts expect the rally to continue and breach 21,000 rupees in coming sessions.

At 10:40 a.m., the contract was at 20,589 rupees, up 0.25 percent, after gaining 1.3 percent in the previous three sessions. The earlier record of 20,624 was hit on Tuesday.

"Gold is expected to trade positive due to continuing debt problems in Europe, and may witness 21,000 rupees by end of the week," said Pranav Mer, senior analyst with Mangal Keshav Commodities.

International gold held near its highest in more than two weeks as growing fears about Portugal's debt pummeled the euro, sending bullion priced in the single currency to a record high.

However, a strong rupee kept the upside in local prices limited, analysts said.

The rupee strengthened supported by positive opening of domestic shares and also tracking gains in other Asian currencies. (Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil)

Source