<p>In anticipation of aggressive rate cuts by the RBI next month and waning investor interest in gold, the markets reaped the rewards of higher investor flows on Wednesday. <br /><br /></p>.<p>Gold price also witnessed second biggest fall this year. The Sensex and the Nifty touched highest closing levels in over 28 months well above the psychological 20,000 mark and 6,000 mark respectively. The Sensex closed at 20,212.96 points, rising 2.49 per cent or 490.67 points on Wednesday, its highest closing level since January 5, 2011. <br /><br />The Nifty jumped 151.35 points or 2.52 per cent to 6,146.75, its highest closing level from January 3, 2011. <br /><br />Positive headline inflation data released on Tuesday, showing a sharp fall in wholesale price inflation in April 2013, further raised investor hopes of the RBI cutting policy rates to perk up economic growth.<br /><br />Gains in Asian and European stocks as foreign investors chased risk assets across the globe also lifted investor sentiment on Dalal Street, with interest rate sensitive sectors like realty, banking, capital goods and auto leading the rally. <br /><br />In Bangalore, gold prices fell by Rs 149 per 10 gm to Rs 27,331 on Wednesday, on the back of brisk sales in gold jewellery showrooms in the city. Gold prices in Bangalore have fallen by over Rs 300 per 10 gm over the past week. Prices per sovereign (8 gm) were Rs 21,920 on Wednesday evening. <br /><br />Gold prices in New Delhi on Wednesday fell by Rs 600 per 10 gm to Rs 27,300, which is expected to trigger brisk retail purchases ahead of the wedding season. <br />The fall was the second biggest since April 15 when prices had plunged Rs 1,160 to Rs 26,640 per ten gm.<br /><br />Gold prices in Mumbai fell by Rs 270 to Rs 26,760, by Rs 415 to Rs 27,525 in Kolkata and by Rs 390 to Rs 27,090 per ten gm in Chennai.<br /><br />The government has taken several steps, including raising import duty, to curb the inbound shipments of gold. RBI too has put restriction on banks to import gold.<br /><br />Market analysts noted on Wednesday that speculators were quick to offload their positions in tandem with weak global trends as a stronger dollar curbed demand for an alternative investment, and this influenced gold prices on futures trade platforms. <br />Earlier in the day, the PM's Economic Advisory Council Chairman C Rangarajan said, “Gold prices are unlikely either to go up or go down substantially in coming months.”<br />Citing reasons for the huge fall in domestic gold prices, brokerage firm SMC Comtrade Chairman and Managing Director D K Aggarwal said, “Gold as an investment asset is losing its sheen across the world. Big investors in India and other economies are shifting to equity markets for better returns.”<br /><br />Kotak Securities' vice-president Sanjeev Zarbade said in a note on Wednesday that the current rally is partly fuelled by heightened expectations of further interest rate cut by the RBI.<br /><br /></p>
<p>In anticipation of aggressive rate cuts by the RBI next month and waning investor interest in gold, the markets reaped the rewards of higher investor flows on Wednesday. <br /><br /></p>.<p>Gold price also witnessed second biggest fall this year. The Sensex and the Nifty touched highest closing levels in over 28 months well above the psychological 20,000 mark and 6,000 mark respectively. The Sensex closed at 20,212.96 points, rising 2.49 per cent or 490.67 points on Wednesday, its highest closing level since January 5, 2011. <br /><br />The Nifty jumped 151.35 points or 2.52 per cent to 6,146.75, its highest closing level from January 3, 2011. <br /><br />Positive headline inflation data released on Tuesday, showing a sharp fall in wholesale price inflation in April 2013, further raised investor hopes of the RBI cutting policy rates to perk up economic growth.<br /><br />Gains in Asian and European stocks as foreign investors chased risk assets across the globe also lifted investor sentiment on Dalal Street, with interest rate sensitive sectors like realty, banking, capital goods and auto leading the rally. <br /><br />In Bangalore, gold prices fell by Rs 149 per 10 gm to Rs 27,331 on Wednesday, on the back of brisk sales in gold jewellery showrooms in the city. Gold prices in Bangalore have fallen by over Rs 300 per 10 gm over the past week. Prices per sovereign (8 gm) were Rs 21,920 on Wednesday evening. <br /><br />Gold prices in New Delhi on Wednesday fell by Rs 600 per 10 gm to Rs 27,300, which is expected to trigger brisk retail purchases ahead of the wedding season. <br />The fall was the second biggest since April 15 when prices had plunged Rs 1,160 to Rs 26,640 per ten gm.<br /><br />Gold prices in Mumbai fell by Rs 270 to Rs 26,760, by Rs 415 to Rs 27,525 in Kolkata and by Rs 390 to Rs 27,090 per ten gm in Chennai.<br /><br />The government has taken several steps, including raising import duty, to curb the inbound shipments of gold. RBI too has put restriction on banks to import gold.<br /><br />Market analysts noted on Wednesday that speculators were quick to offload their positions in tandem with weak global trends as a stronger dollar curbed demand for an alternative investment, and this influenced gold prices on futures trade platforms. <br />Earlier in the day, the PM's Economic Advisory Council Chairman C Rangarajan said, “Gold prices are unlikely either to go up or go down substantially in coming months.”<br />Citing reasons for the huge fall in domestic gold prices, brokerage firm SMC Comtrade Chairman and Managing Director D K Aggarwal said, “Gold as an investment asset is losing its sheen across the world. Big investors in India and other economies are shifting to equity markets for better returns.”<br /><br />Kotak Securities' vice-president Sanjeev Zarbade said in a note on Wednesday that the current rally is partly fuelled by heightened expectations of further interest rate cut by the RBI.<br /><br /></p>