Gold breaches Rs 16,000 level in futures trade

Breaking all previous records, gold prices today surged to a new peak at Rs 16,349 per 10 gram in futures trade, as traders increased their exposure in the precious metal following melting stock and forex markets.

The metal, which had been on a record-setting spree for the last one week, spurted to an all-time high of Rs 16,349, by adding 2.55 per cent on the Multi Commodity Exchange, as funds preferred to park their funds in gold amid deepening global recession.

The August contract for gold climbed 2.55 per cent to touch Rs 16,349 per 10 gram. It clocked two lots.

The bullion market received a major booster from the firming global trend as the gold in the US markets surged to 1,007.20 dollar an ounce last night.

"Funds around the world indulged in picking gold as a safe investment during current financial turmoil," said Galipelli Harish, head of research with Karvy Comtrade.

The firmness was also witnessed in spot market as gold prices climbed much close the market expectations of Rs 6,000 per 10 gram in all domestic bullion markets.

In Delhi, the metal traded at Rs 15,750, in Chennai at Rs 15,775 per 10 gram, respectively.

Buying by jewellers and retail customers almost dried up at existing higher levels, said a Delhi-based jeweller Rakesh Anand.