Gold hits record high on strong demand

Gold prices today spiked to a new high of Rs 16,900 per 10 gm in the bullion market here on strong marriage season demand amid firmimg global trends. Gold gained Rs 75 to close at Rs 16,900, a level never seen before. The precious metal in the US markets scaled a new high of $1,099 an ounce.

Marketmen said fresh buying by stockists and jewellery fabricators to meet the demand during the marriage season and strong global cues led gold to touch an all-time high level. They said the precious metal, which has been on a record-setting spree since last few trading sessions, also influenced by the Reserve Bank of India (RBI) move to buy 200 tonnes of gold from the International Monetary Fund (IMF), raising speculation that more countries would follow suit.

Standard gold and ornaments rose by Rs 75 each to Rs 16,900 and Rs 16,850, respectively. Sovereign climbed to a fresh peak of Rs 13,300 per piece of eight gm. Silver ready closed flat at Rs 27,500 per kg in restricted buying, while silver weekly-based delivery lost Rs 70 at Rs 27,185. Silver coins rose by Rs 200 to set a record high level of Rs 33,500 for buying and Rs 33,600 for selling of 100 pieces.