Gold opens to set new peak at Rs 16,100 on firm global cues

Zooming past all previous levels, gold has achieved a new peak at Rs 16,100 per ten grams at opening trade here today on frantic buying by stockists and jewellers on firming trend in the overseas markets.

Gold gained Rs 100 to reach Rs 16,100 per ten gram, a level never earlier seen, after the precious metal in the overseas markets surged to USD 1,003 an ounce to a six-month high as a weaker dollar boost its appeal as an alternative investment.

Marketmen said the metal in futures trading on the New York Mercantile exchange crossing $1,000 raised fears that it might notch up further ground.

They said buying activity was strong enough despite the onset of Shradhh, an inauspicious fortnight for making any new purchases.

There is increased buying among stockists and jewelery fabricators to meet ensuing marriage and festival season demand,' All India Sarafa (Bullion) Bazar President Sheel Chand Jain said.

He said retail customers placed orders with jewellers for the marriages and festival season beginning on September 18, once the Shradhh period ends.

Governments across the globe cutting interest rates and spending huge amounts of money to combat the worst recession since World War II was spurring investors to buy bullion as a hedge against potential inflation and debasement of currencies, said a leading bullion merchant Ravi Jalan.