Gold price climbs to record, likely to cross one lakh in few days 

THIRUVANANTHAPURAM: The price of gold has climbed to a new record. There was a rise of Rs 1040 today alone. With this, the price of a sovereign of gold today is Rs 86,760 for 22 carat gold. The price of a gram is Rs 10,845 after an increase of Rs 130. When bought as jewelry, one will have to pay more than Rs 95,000 for a sovereign of gold, including service tax, cess and making charges.

If the price increases in the same manner, one will have to pay Rs 1 lakh for a jewelry of one sovereign in a few days. The price of gold had increased by Rs 1,040 twice yesterday. The piece of gold increased by Rs 680 in the morning and Rs 360 in the afternoon. With this, the price of a sovereign of gold touched Rs 85,720.

The sudden change in the global market led the gold price to surge. The weakening of the US dollar is also causing the price of gold to rise. Along with that, the upcoming special days including Navratri, Mahanavami and Diwali have also increased the demand. India is the world's largest consumer of gold. Tons of gold are imported into the country every year. Therefore, even small changes in the global market will basically be reflected in the price of gold in India.

1. The US Federal Reserve is preparing to cut interest rates to overcome the economic slowdown.
2. Central banks in Europe and Asia are continuously increasing their gold reserves.
3. Import costs are increasing due to the sharp fall in the value of the rupee against the dollar.
4. Global funds and financial institutions are buying gold, which is a safe investment.