Metal magic

May 3: Within 90 days of the sensex conquering Peak 10000, gold prices in Calcutta today thundered to Rs 10,000, propelled by aggressive buying by investors and jewellers who take their cue from the yellow metal?s sizzling show in global markets.

And unlike the BSE bellwether, which after skirting 10000 slithered to 9980 on February 6, gold latched on to the magic number at the end of trade.

Ecstatic dealers said the rally would continue with some corrections.

?There could be minor reduction now. But it certainly looks good in the medium to long term,? Harshad Ajmera of the city-based JJ Gold House said.

Gold across all categories today pocketed gains in the range of Rs 215 to Rs 240, reaching the Rs 10,000-mark for the 10-gram grade.

The yellow metal jumped Rs 240 to Rs 10,000 per 10 gram in Calcutta; elsewhere prices shone but with a tad less lustre: it was a gain of Rs 240 to Rs 9,950 per 10 gram in Delhi, Rs 215 to Rs 9,840 in Mumbai and again Rs 215 to Rs 9,930 in Chennai.

Analysts said the global market was orchestrating trends in the country. International prices touched a 25-year high on weak dollar, high crude price and uncertainty surrounding Iran's nuclear programme.

Jewellers and stockists, however, warned that demand could fall sharply if prices continued to rise.

?Demand for gold have already fallen steeply ever since gold prices crossed the Rs 9,000 per 10 gram level and we fear it will nosedive once gold crosses Rs 10,000 level,? said a Mumbai-based jeweller.