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Summary The deadlock over US debt ceiling issue helped drive Gold to an all time high in two weeks.
The fresh financial crisis of the US and the UK which have been started since financial crisis of 2008 and continued bearish trend at the stock markets had tumbled investors’ confidence. Therefore, they prefer to invest in gold and silver despite in currency and world banks also increasing gold ratio in their reserves. According to experts, in near future, the US dollar will lose its value as reserve currency, and surge in gold price is due to increase in demand. They said that the gold demand also surged due to possible hike in inflation. Only in July, the price of precious metal has surged by $103 per ounce to close at $1621 per ounce with an increase of eight percent as compared to last year. In local market, gold price was recorded at Rs 44,800 per tola on March 16 and it reached Rs 52,200 on July 27 with an increase of 16.5 percent. The experts said that downward trend could be come in gold price any time but the economic condition of the US and the UK might be prevented it for some time.
