Rate of inflation fell sharply today during the early trade today in the morning, raising hopes of chances of rate cut in the RBI policy. Hopes of the crude oil prices coming down were also reignited. The gold prices too came down today to hit a new low. Sensex gained 387 points heralding growth in the economy today as it closed at 18,745. In over seven months this is the largest gain in a singlesession.

Global reduction in gold prices couldn't be a better news for the government. India, the biggest importer of gold, had significant benefits after the prices crashed below $1,350 per ounce level. However, NSE and BSE were 6% down despite the growth. Experts said that the investors should be careful at times like these.

Gold Rates now hover at Rs 25,536 for 10gms of 24 carat gold falling by 0.89%. This biggest waning in prices in over three years will attract lot of buyers.

(AW- Anil)