Gold at Rs 18,340 in India, hits peak in overseas mkts

Gold prices surged by Rs 325 to a near record level of Rs 18,340 per 10 grams in the national capital today on heavy buying by stockists and jewellers as the metal climbed to an all-time high in global markets.

Buying activity gathered momentum after the metal surpassed all previous records in overseas markets, which normally set the price trend in the domestic market, to set a new peak of $1,235.30 an ounce.

Gold in Delhi had reached a record high of Rs 18,550 per 10 grams in India and $1,227.50 in overseas markets on December 3.

With the general firming trend, silver prices also spurted by Rs 1,100 to Rs 29,900 per kg on increased offtake by industrial units.

Investors and funds worldwide were seen parking funds that were pulled out of melting equity and forex markets in bullion over concerns that the bail-out plan for debt-ridden European Union members would fail.

The upsurge in the prices of precious metals in world markets comes at a time when demand has spiked on account of heavy buying for the ongoing marriage season, which further fuelled the surge in gold prices.

Standard gold and ornaments surged by Rs 325 each to trade near a record high of Rs 18,340 and Rs 18,190 per 10 grams, respectively. Both had gained Rs 295 in the previous session. Sovereigns also jumped up by Rs 150 to Rs 14,400 per piece of eight grams.

Silver ready prices increased by Rs 1,100 to Rs 29,900 per kg and weekly-based delivery by Rs 1,195 to Rs 29,640 per kg. Prices of silver coins also jumped up by Rs 300 to Rs 34,400 for buying and Rs 34,500 for selling of 100 pieces.