Gold soars to new record on wedding season demand

Gold prices soared to an all-time high of Rs 18,660 per 10 gm in the national capital today on aggressive buying by stockists and jewellers for the ongoing marriage season amid a firming global trend.

Prices of the precious metal zoomed by Rs 260 to Rs 18,660 and ornaments by a similar margin to Rs 18,510 per 10 gm. Sovereigns also rose by Rs 75 to Rs 14,525 per piece of 8 gm.The current surge surpassed the previous record set on December 3 last year.

The trading sentiment turned bullish after gold climbed in New York as a weaker euro revived demand for a safe haven to park funds. Last week’s decline in gold prices to the lowest levels in more than two weeks boosted the investment appeal of the precious metal. Shifting of funds from melting equity markets to rising bullion for quick gains further fuelled the uptrend, they said. The BSE benchmark Sensex plunged to near a three-month low on account of the euro zone crisis.

The global factors coincide with a boom in all-round buying by jewellers and retailers in domestic markets for the ongoing marriage season.

The price of gold in overseas markets, which normally sets the trend on the domestic front, recorded handsome gains of $15.30 to $1,192.30 an ounce in New York last evening.

However, silver lacked the necessary buying support and fell by Rs 100 to Rs 28,950 a kg and weekly-based delivery by Rs 25 to Rs 28,635 a kg. Silver coin prices held steady at Rs 34,400 for buying and Rs 34,500 for selling of 100 pieces.

In London, spot gold was at $1,189.30 an ounce, up around 1 per cent so far this week after shedding 4.4 per cent last week from recent record highs at $1,248.95.