Gold strikes fresh peak of Rs 18,550

Gold continued its rising spree today to set a fresh record at Rs 18,550 per ten gram in the bullion market today as dollar remained weak.

The precious metal gained Rs 90 from yesterday's level of Rs 18,460 as expectations of further rise in prices made the metal, the alternate investment option, more appealing to investors than risk-loaded equities.

Marketmen said the stage for rally in gold was set by the Reserve Bank of India's purchase of bullion from the IMF in October, fuelling speculation that other banks would follow suit.

"Gold rose on a bullish trend in overseas markets after dollar plunged and raised demand for the precious metal as safe hedge," said Mahesh Verma of Omsons Jeweller.

He said there was hardly any buying by retailers and actual users for the current marriage season.

Marketmen say fold is likely to continue its upward march in the coming days.

Gold might reach a peak of $1,300 an ounce next year as more investors purchase bullion to preserve wealth against a declining dollar, leading global bank - UBS said, and added that central banks buying also support a uptrend.

Silver ready too spurted further by Rs 50 to Rs 29,900 per kg while weekly-based delivery fell by 100 to Rs 29,450 per kg on reduced offtake by speculators.