Gold sets new peak at Rs 16,200 on global cues

The figure 16,000 is ringing music to the ears of investors whose safest investment choice gold has set an all-time record of Rs 16,200 per 10 grams while the other option -- stocks -- are hovering around this level.

Standard gold and ornaments gained Rs 200 each at Rs 16,200 and Rs 16,050 per 10 grams, respectively, in the bullion market here. Sovereign also shot up by Rs 50 to a new high of Rs 12,900 per piece of 8 grams.

Marketmen said for the first time in more than six months, gold in the overseas markets crossed the psychological $1,000 an ounce level owing to a weak dollar and concern that inflation may rise in the future, boosting the precious metal's appeal.

Surprising, gold, which generally moves opposite trends in stock markets, is now moving upward along with surges in bourses.

The Bombay Stock Exchange benchmark Sensex today shot up by 122.11 points to trade at the year's high of 16,139.27 points in early trade.

Silver coins also touched a new high of Rs 31,700 per 100 pieces on brisk buying by stockists.

Marketmen said buying activity was strong enough despite the onset of 'Shraadhh', an inauspicious fortnight in Hindu mythology for making fresh purchases.

All India Sarafa (Bullion) Bazar President Sheel Chand Jain said retail customers placed orders with jewellers for the marriages and festival season, beginning on September 18, once the 'Shraadhh' period ends.