Gold surges by Rs 300, silver gains Rs 370

Gold continued with its record- breaking rise in the national capital today, surging by Rs 300 to Rs 19,500 per 10 grams, while silver also hit an all-time high after gaining Rs 370 to Rs 32,400 per kg.

Bullion dealers said the trading sentiment was bullish, amid hectic buying for the ongoing festive and marriage season.   

Gold normally witnesses a pick-up in demand in the last quarter, starting from the Rakshabandhan festival and continuing till Dhanteras, which is the most auspicious day to buy gold according to Hindu mythology.

In the domestic market, gold of 99.5 per cent and 99.5 per cent purity shot up by Rs 300 each to an all-time high of Rs 19,500 and Rs 19,400 per 10 grams, respectively. Sovereigns followed suit and rose by Rs 200 to a record level of Rs 15,200 per piece of eight grams.

In addition, the rise in prices of the precious metals in international markets also pushed up rates in the domestic market, dealers said. Gold in overseas markets, which normally sets the price trend in the domestic markets, rose to a record high of $1,276.50 an ounce, while silver surged to $20.53 an ounce, its highest level since March, 2008.

Silver was mainly supported by demand from industrial units and coin-makers, while gold prices were driven by strong demand from jewellers and retail customers for the ongoing marriage season.

Demand for silver was also driven by record auto sales in the month of August, as the metal is also used in electrical circuit and battery manufacturing. Silver-ready surged by Rs 370 to Rs 32,400 per kg and weekly-based delivery by Rs 320 to Rs 32,040 per kg, levels never seen before.

Similarly, silver coins gained Rs 100 to Rs 35,100 for buying and Rs 35,200 for selling of 100 pieces.