Gold is to fly over the rainbow so high

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Gold rally continues over S&P downgrade
Gold's so called reputation 'flight to safety' continues amid global economic and financial uncertainty. S&P's decision of downgrading U.S. credit rating have forced global investors to park their money in yellow metal as gold being the safest investment and hedge against global economic instability.

Concerns around the euro zone and U.S. debt crisis aided gold to clock a new high last week.

Indian gold prices which are directly linked to international prices stayed ahead to reflect gains.

Gold for immediate delivery was seen trading at Rs 24,865 per 10 grams.

At the Multi Commodity Exchange, Gold for delivery in far-month February rose all-time high to Rs 26,131 per 10 grams.

Gold for October delivery on MCX opened at Rs 24,700 per 10 grams and was trading between Rs 24,980 – Rs 24,987 per 10 grams around 1:30 p.m. IST. It hit a new peak of RS 25,180 per 10 grams during the day.

Global investors are optimistic about the performance of gold as global worries continues as they consider it to be a hedge against the global uncertainties.

Read more about: gold, united states, standard poor
Story first published: Monday, August 8, 2011, 13:44 [IST]
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