Prices of gold touched its highest in the past two months, on 15 December 2008, following the weakening of the dollar that spurred an appreciation for precious metal investment. The fall in the US dollar on the said date was of 1.6 percent, as compared to a weighted basket of six major currencies. The dollar also fell in the week before by 4 percent, which increased gold prices by 9.1 percent.

The trend of seeking gold investment as safe haven has been witnessed quite often in 2008. On 10 October 2008 gold was traded at a high of $936.30, a time when the markets were striving to break through the economic slowdown. On 17 March 2008 gold touched $1,033.90.

Gold futures for February contract on the Indian commodity exchange were Rs12,932 per tola (10gm) as per MCX.