Gold zoom past to 28-year high

LONDON: A turmoil in global financial markets with dollar plunging to record low levels and crude oil rising to record high kicked up the gold prices to highest level since 1980 as investor found bullion as safe haven during such crisis.
    
Taking cues from strengthening global bullion prices, the metal in India surged to 17-month high level by rising Rs 135 to trade in five figures at Rs 10,000 per ten gram in Delhi followed by Rs 9915 in Mumbai.
    
Gold for December delivery rose 5.50 dollar to 776.90 dollar an ounce on the New York Mercantile Exchange, the highest for a most-active contract since January 22, 1980, the day after the price reached a record 873 dollar.
    
Gold is headed for the seventh straight annual gain after oil topped 90 dollar a barrel today and the dollar fell to 1.4319 against the each euro.
    
In India, the picture was more bright with stock markets plunging sharply since last three trading session by wiping nearly 1600 points in its benchmark and forcing some investors to shift their funds in gold.
    
The shifting of some funds took place from stock markets to the bullion at a time when the market was passing through a patch of festivals like Dussehra and Diwali, besides heavy buying of jewellery for the current marriage season.
    
While maintaining a 28-year high level in overseas markets for a second consecutive day, the speculation that the US Federal Reserve might cut interest rates this month, spurred demand for the metal as an alternative investment to the dollar.