Kochi: Gold prices continued to rally for the third consecutive day as investors found the yellow metal as a better alternative in investing. Prices for gold increased Rs 80 on Saturday. The current prices for 1 gm of gold come in at Rs 1.630, while 8 gm of gold costs Rs 13,040.
The surge in price of the precious metal has resulted in a fall in its consumption in India, a major consumer of the yellow metal. In July -September period,consumption of gold declined nearly 42 per cent to reach 111.6 tonnes.
In the international market, gold traded at Rs 1,630 at close on Friday. The surge in prices is manly due to a weaker dollar as well as the recent sale of 200 metric tonnes of gold to the reserve bank of India by the International Monetary Fund or IMF – analysts observed.
According to Analysts, the precious metal is likely to continue its bullish trend through at least the first half of 2010. Analysts estimates gold price to reach at $2,000 an ounce that would reflect a gain of about 73% from current record levels.