Gold, silver set new record on firm global cues

Continuing their record setting spree for the seventh straight day, silver surged by Rs 2,000 to Rs 72,000 per kg, while gold jumped by Rs 230 to Rs 22,320 per 10 grams on speculative trade driven by an overseas rally.

Trading sentiment in the domestic market was bullish after gold advanced to USD 1,512.47 in global markets as a weaker dollar and European debt concerns boosted the metals appeal as an alternative investment. Silver moved up by 2.1% to USD 47.25 an ounce, its highest since 1980.

The dollar slid to its lowest level since August 2008 against a basket of six major currencies this week on speculation that the US Federal Reserve will be slow to raise borrowing costs.

Standard and Poor's this week cut its debt outlook for US to negative from stable.

On the domestic front, gold of 99.9 and 99.5% purity jumped by Rs 230 each to Rs 22,320 and Rs 22,200 per 10 grams, respectively.

Sovereign followed suit and rose by Rs 100 to a record level of Rs 18,100 per piece of eight gram.

Continuing its rally, silver ready surged by Rs 2,000 to Rs 72,000 per kg and weekly-based delivery by Rs 2,640 to Rs 70,640 per kg.

Silver coins too sky-rocketed and added Rs 3,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.