Gold price rises by Rs 240 per sovereign, highest rate recorded so far 

THIRUVANANTHAPURAM: After a gap of two days, gold prices have increased again. There was an increase of Rs 240 per sovereign taking the price to Rs 91,960. The price of a gram increased by Rs 30 taking to Rs 11,495 per gram. This is the highest rate recorded so far. The price of a sovereign yesterday was Rs 91,720 and Rs 11,465 per gram. There has been a significant increase in gold prices since last month. The lowest gold rate recorded this month was on October 3. The price of a sovereign was Rs 86,560 then and Rs 10,820 per gram.

India is the world's largest gold consumer. Tons of gold are imported into the country every year. Therefore, even small changes in the global market are basically reflected in the price of gold in India. If the price of gold falls in the international market, it is not necessary that the price in India will fall. The value of the rupee, local demand and import duties play a major role in determining the price of gold in India.

Investors are buying gold as a safe haven asset in view of the US shutdown and political crises in France and Japan continue. Gold prices have risen 53 percent so far this year. Economists say the price of gold could cross Rs 1 lakh by Diwali.