Gold buying is a happening process for anyone and everyone as this precious yellow metal is considered as a safe hedge against economic crisis. Gold prices fell a couple of days back on surging dollar but the commodity is running ahead in the race as the prices are soaring again. Especially, in countries like India, the gold buying has edged up on stronger demand for gold. Key festivals like Diwali are arriving in India very soon, leading to stronger appetite growth for gold.

A dealer from a state-run bullion importing bank said, "A few exporters and domestic traders have covered from the morning, I expect another 100 kgs to get priced in."
According to the MCX (Multi Commodity Exchange), gold was trading 0.08% higher at 19,545 rupees per 10 grams in India.

The upcoming festival season in India will definitely lead to a hike in gold prices and the situation worldwide is not very different than this as far as gold’s rally against the basket of currencies is concerned.

Gold Vs Dollar

Gold prices are record-high at 1,295 dollars an ounce, as gold investments are considered as a safe-haven on the back of the declining US currency.

Senior trader Manoj Ladwa at ETX Capital told Agence France Presse that a combination of a weakening dollar and the Federal Reserve indicating it may loosen monetary policy further is pushing gold to record highs.

"While some are calling for it to run out of steam around the 1,300-dollar level, the momentum still clearly remains to the upside,” added Ladwa.
The US dollar is still weak against Gold as US gold futures are trading steady at $1,344.6 an ounce.