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GOLD hits $1000 an ounce, Rs.16,000

Gold futures hit the key $1,000 mark for the first time in nearly a year, as global financial worries boosted the safe-haven appeal of the precious metal. In recent action, gold for April delivery traded at $996.80 an ounce, up $20.30, or 2%, on the day. It earlier touched a high of $1,000.30. Gold for February delivery, the near-month contract which registered little volume, was last up $20.10, or 2%, at $996.60 an ounce on Globex.

Locally Gold prices set yet another record of Rs 16,000 per 10 gram in line with the surging global bullion markets on speculation that the global recession will deepen further.

Market analysts said the demand of the yellow metal picked up after the global equity dropped in the recent past.They said, investors find no other option but to park their funds in the precious metals, while physical buying for the current marriage season declined substantially.

Gold in the year 2008 outperformed most asset classes and has provided a 32-per cent return on investment.The compounded annualized returns on investment in gold in the last five years ending 2008 have been 19 per cent. In 2009 till date, gold price has appreciated by more than 12 per cent and still going stronger.

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