Gold nears Rs 17k level on firm global trend

Gold prices today hit an all-time high of Rs 16,980 per 10 gram in the bullion market here in tandem with the global market, where the metal crossed the crucial $1,115 an ounce level.

Marketmen said gold prices reached more close to Rs 17,000-level on sustained buying by stockists and jewellers, influenced by a firming global trend.

Gold shot up by Rs 105 to Rs 16,980 per 10 gram here.

Gold, which had been under buying pressure for the ongoing heavy marriage season, remained on record setting spree ever since the Reserve Bank of India bought 200 tons of gold from the International Monetary Fund early this month, raising fears that other governments may follow suit.

Some investors' fund were seen shifting from other assets to the bullion, considering it to be a better bet, they added.

"Gold is being considered a better buy this time and attracting most investors and stockists to create fresh positions," said a Delhi-based metal trader Rakesh Anand.

He said a weakening dollar fades demand for forex and equities at this point of time when gold crossed the crucial $1,115 an ounce level in the international market.

Standard gold and ornaments shot up by Rs 105 to Rs 16,980 and Rs 16,830 per 10 gram, respectively. Sovereign gained Rs 50 to Rs 13,350 per piece of eight gram.

Silver ready rose by Rs 200 to Rs 27,500 per kg and weekly-based delivery by Rs 10 to Rs 27,050 per kg. Silver coins rose further by Rs 100 to Rs 33,500 for buying and Rs 33,600 for selling of 100 pieces.