Gold prices in India cross Rs. 20,000 mark

Gold prices in India, the world's largest consumer of the yellow metal, climbed atop Rs. 20,000 per 10 grams for the first time ever, hitting demand ahead of the peak festival season next month. In fact, local jewellers are now expecting a rise in scrap gold supplies. In the international market, gold rose to a record for a second day, as the US dollar extended losses, increasing investor demand for the precious metal as an alternative investment and store of value. Silver too extended a rally to a 30-year high. Expectations of another round of Quantitative Easing by the US Federal Reserve had fueled a rise in gold prices on Oct. 13, which marked the 16th record high in five weeks. The dollar continued to slip against a basket of six major currencies on speculation that the Fed policymakers will ease monetary policy further to shore up growth of the sagging US economy. Goldman Sachs said that gold will benefit from the so-called Quantitative Easing and forecast US$1,650 an ounce in 12 months. Gold has gained 25% this year, on course for a 10th consecutive annual gain, the longest streak since at least 1920.