In the year 2011, it had spurted by Rs 6,605 or 32.09 per cent. Silver too was in great demand scoring impressive rise of Rs 7,220 or 14.17 per cent on December 22, over its last year-end close though remained below the intra-trade all-time high of 75,020 recorded last year (April 25, 2011).
The bullion market witness a brief closure during March due to traders protest against the budget proposal to hike import duty and levy on branded jewellery, which was rolled back by the government later in April. The bullish sentiment was largely fanned by weaker dollar in global market and fears of inflation after Federal Reserve pledged to hold US interest rates near zero until the end of 2014. In Europe, gold prices rose on high euro amid hectic shot-covering as the precious metal once again returned to "Safe haven" tag. Gold visited USD 1,700 mark in June following bleak US employment data caused by eurozone crisis that spurred heavy demand. The atmosphere created by faltering growth data from across the globe raised hopes of further quantitative easing by Federal Reserve, prompting investors to go for gold and treasuries in global markets. PTI