Gold futures scales new peak on strong global cues

Gold glittered to hit an all-time high of Rs 19,850 per ten gram in futures trade today, tracking strong overseas markets, where the yellow metal zoomed to a new high of $1,354.10 an ounce. 

Extending its record-setting spree for the third session, strong demand at domestic markets ahead of festive and marriage season, helped gold futures to hit record highs.

All three running contracts April, December and February were trading at their record highs.

Trading sentiments in gold futures remained extremely bullish on the back of dollar weakness against major currencies and speculation that the US Federal will take steps to support the world's largest economy.

In global markets, gold gained for the third straight day to trade at an all-time high of $1,354.10 an ounce on speculation that government spending will weaken the dollar and spur demand for the precious metal as an alternative asset.

"Gold is approaching fast towards the Rs 20,000 per-ten gram-mark in futures as well as spot markets," said an analyst.

At the Multi Commodity Exchange counter, gold for delivery in April contract gained Rs 83, or 0.41 per cent, to trade at new high of Rs 19,850 per ten gram, with a turnover of one lot. 

The gold for delivery in February contract also rose by Rs 116, or 0.53 per cent, to Rs 19,763 per ten gram, a level never seen before, clocking a turnover of two lots, while December-month contract up by Rs 119, or 0.53 per cent, to Rs 19,642 per ten gram, with a turnover of 11 lots.