Gold climbs to record high of Rs 32,758

Firm overseas trend, spot demand support uptrend

Surpassing all previous records, gold today hit a new record high of Rs 32,758 per 10 grams in futures trade as participants built up huge speculative positions, tracking a firming trend overseas.

A firming trend in the spot market on increased buying ahead of marriage and festive season helped gold to touch new highs in futures trade here.

At the Multi Commodity Exchange, gold for delivery in April next year shot up by Rs 146, or 0.45%, to trade at an all-time high of Rs 32,758 per 10 grams, with a turnover of two lots.

The December contract gained Rs 177, or 0.48%, to trade at record high of Rs 32,030 per 10 grams, clocking a business volume of 287 lots.

October gold also edged up by Rs 181, or 0.60%, to trade at record high of Rs 31,649 per 10 gm in a turnover of 11,951 lots.

In the domestic spot market yesterday, gold strengthened by Rs 130 higher at an all-time high of Rs 31,980 per 10 gm in the national capital.

Market analysts said gold futures climbed to a new high on speculative positions built-up by speculators, driven by a firming trend overseas.

Speculation that the European Central Bank will announce unlimited purchases of government bonds to defuse the debt crisis, boosted the euro, raising demand for the precious metal.

Meanwhile, gold gained 0.30% to $1,698.65 an ounce in Singapore.