August 21, 2011 12:30 PM

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Surge in Gold prices beneficial for Govt too, says analysis

The bullion traders and investors are not alone in reaping rich benefits from the glittering gold prices. According to an analysis by PTI, the strategy of keeping a substantial holding of the yellow metal seems to be working well for the government too. A sharp rally of over 20 per cent in gold prices so far this month has led to a surge of about over 22 thousand crore rupees in the value of gold held by RBI, which acts as a custodian of the yellow metal for the government of India. The gold prices in domestic market has appreciated by 20.4 per cent since the beginning of this month to hit a record high of 28,230 rupees per 10 grams. The experts are anticipating further rise and believe that the gold prices might even touch 30,000 rupee level well before Diwali as investors are increasingly shifting funds to gold amid a free fall in equity markets.

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