Dubai: Gold on Monady rose to a record $1,607.70 an ounce, heading for the longest rally in 31 years, as debt concerns in Europe and the US boosted demand for the metal as a safe haven.
Gold for immediate delivery climbed from $1,600 (Dh5,872) an ounce to over $1,600.10 for the first time in London while gold futures extended gains to a record $1,601 an ounce on the Comex in New York. The metal traded at $1,596.80 in Melbourne while gold for immediate delivery rose as much as 0.3 per cent to a record $1,597.73 an ounce.
With the latest rally, gold prices rose $50 or 3.25 per cent in a week and 35 per cent in a year.
"Investors, especially on the corporate front, are considering gold as a safe investment, particularly given the systematic upward trend that it is showing," said Sajith Kumar, Chief Executive and Director of JRG International Brokerage at the Dubai Multi Commodities Centre (DMCC).
Bullish trend
Traders in Dubai, one of the world's largest gold markets, are bullish on the outlook for the metal's price, which is inching towards $2,000.
"Gold has appreciated 35 per cent in a year and we expect it to hit $2,000 by 2015," Shamlal Ahmad, Managing Director of Malabar Gold, told Gulf News.
"Despite this, people will buy gold as a safe investment instrument that fetches rich returns. Those purchasing gold even now will be able to make solid profits this time next year."
The long term trend for the metal is bullish with initial resistance between $1,607 and $1,617, while support is between $1,585 and $1,572.
Gold futures in India also advanced to a record. Gold futures for August delivery rose as much as Rs66 (Dh5.35), or 0.3 per cent, to reach an all-time high of Rs23,137 per 10 grams on the Multi Commodity Exchange of India Ltd in Mumbai.
Pradeep Unni, Vice-President of Richcomm Global Services at DMCC, explained that despite the upward trend retailers are wary of investing in the gold market.
