New Delhi: The gold prices touched a new high on Thursday as it surged by Rs 435 to 26,490 on the back of global recession and spike in demand of gold ahead of the marriage season.

Though the marriage season is still two months away, the demand for gold has witnessed an increase over fear of further escalation in prices.

Navin Mathur, commodity head, Angel Broking said, “Gold prices will continue to stay high thanks to the surging income of middle classes, huge young population and sustained rural economy.”  

The World Gold Council (WGC) said youths constitute around half of the Indian population. Given the fact, consumption will increase at higher pace in the days to come.

About 66 percent gold is sold in the rural areas. If the agriculture sector grows by 4 percent annually, the demand for the gold will certainly go up.

The WGC said demand for gold witnessed upward trend in the areas where land has been acquired for the industrialization.
Delhi Bullion Association president Vimal Goyal said, “The price of gold has surged by 400 percent over the past one decade. The investors got 22 percent return during the last five weeks.”

Given the huge investment potential in gold, trading firms have provided several options for the investors, who can make investment in gold bond, gold fund, gold biscuit and gold coin.

A customer can invest in the gold with only Rs 500 in the Banks, post offices and local or national level gold jewelers.

Tata Group aims at setting up special shops in rural areas, in which a customer would have to pay only 15 percent of the total price of the jewellery initially, while the remaining amount can be paid in the easy installments. 

JPN/Bureau