Gold sets new peak at Rs 16,250 on Diwali buying, global cues

 With only days left for Diwali, gold prices today scaled a new high of Rs 16,250 per 10 gram on hectic buying by stockists to meet the enhanced festival demand from retailers and fabricators.

Marketmen said gold soared in tune with global rates, where prices touched a new peak of $1,070.80 an ounce on weakening of $ against its major rivals.

Besides, buying activity gathered momentum as stockists indulged in creating fresh positions to meet demand from jewellery fabricators ahead of Diwali, they said.

In London, gold set a new peak of $1,070.80 an ounce on weakening dollar. Gold has jumped around 20 per cent this year. Silver also touched a fresh high of $ 18.08 an ounce, the highest since July 2008, as weakening dollar shifted investors attention to fast yielding assets like bullion.

Gold and dollar generally move in opposite direction. If the dollar softens, investors prefer to purchase gold as a hedge against inflation, they said.

In the local market, silver coins, used for gifting purposes or as an offering to god during Diwali, rose further by Rs 200 to Rs 32,900 for buying and Rs 33,000 for selling of 100 pieces.

Silver ready recovered Rs 100 to Rs 27,600 and weekly-based delivery by Rs 180 to Rs 27,630 per kg.

Standard gold and ornaments shot up by Rs 130 each to set a new peak of Rs 16,250 and Rs 16,100 per 10 gram, while sovereign climbed a record high of Rs 13,000 per piece of eight gram.