Gold crosses Rs 21,000 in Delhi; silver at new high

The gold price on Wednesday crossed the all-time high level of Rs 21,000 per 10 gm in the national capital, with demand from jewellers picking up amid a busy marriage season.

Silver, also used in jewellery, spurted to the record high level of Rs 43,950 a kg, as demand from industrial units and coin makers went up.

The prices of 99.9 per cent purity gold shot up by Rs 200 to Rs 21,020 per 10 gm, as stockists and jewellers created fresh positions to meet the current marriage season demand, traders said.

Prices of 99.5 per cent purity gold rose by Rs 210 to Rs 20,910 per 10 gm. Sovereign was up by Rs 100 to Rs 16,700 per piece of 8 gm.

Prices of silver ready spurted by Rs 1,600 to Rs 43,950 a kg and weekly-based delivery by Rs 1,750 to Rs 43,450 a kg. Silver coins also rose by Rs 300 to all-time high of Rs 46,500 for buying and Rs 46,600 for selling of 100 pieces.

The sentiment was further boosted by a firm trend in the international markets on concern that the European debt crisis may escalate, increasing demand for haven investments.

Gold prices in the Asian region, which normally sets the price trend on the domestic front, climbed 0.6 per cent to $1,394.25 an ounce, the highest level since November 12. The silver prices gained by 0.8 per cent to $28.29 an ounce.

Even as the retail buying was almost nil at such a high levels and investors are busy with the raising equities, the precious metals rose to their new peak levels, said Surender Jain of All India Sarafa (Bullion) Market Association.

He added that the bullion prices are more co-related to foreign exchange market and development in the international markets than to retail buying.