The gold price at the International Exchange reached U.S. $1,186 an ounce yesterday. Higher demand for gold was registered against the sinking dollar. Experts account for the higher demand by India’s readiness to purchase a huge amount of gold from the International Monetary Fund (IMF). Last month India purchased 200 tons of gold from the IMF for U.S. $6.7bn. Negotiations for a new purchase are in progress.

European analysts point out that India is thereby trying to get rid of the depreciating US dollars at its disposal. They do not rule out that India’s demand may create a critical situation on the world gold market.