Gold peaks to Rs 18k on sustained buying

 
The yellow metal spurted by Rs 220 to Rs 18,000 per ten gram, a level never seen before, on seasonal buying and as prices in international markets touched record levels with the dollar extending its losses.

Traders said a weak dollar made the precious metal cheaper for buyers using stronger currencies.  The gold has rallied 11 per cent after India bought 200 metric tons of gold from the International Monetary Fund in October. Mauritius, Sri Lanka and Russia have followed suit since then. The precious metal in Asian region traded 0.8 per cent higher at $1,179.20 an ounce while in futures trading in New York surged to record $1,181.60 an ounce.

The IMF, which set out two months ago to sell one-eighth of its gold reserves, still has more than 200 tonnes to dispose of and will do so on a “first-come, first-serve” basis, reports quoted market experts as saying.

Bullion, which typically moves inversely to the dollar, also increased for a fourth day after the dollar dropped for a third day against a basket of six major currencies. In the national capital, standard gold shot up by Rs 220 to Rs 18,000 per ten gram and sovereign by Rs 100 to Rs 13,800 per piece of eight gram.