Gold surges to all-time high on festive demand

Gold prices scaled to a new peak of 19,470 per 10 gm in the national capital today on brisk buying by jewellers to meet festival and marriage season demand amid a firm global trend.

Silver prices followed the general bullish trend and jumped by Rs 200 to Rs 31,775 a kg, the highest level for this year, on increased offtake by industrial units and coin makers.

Gold surpassed all records, spurting Rs 145 to Rs 19,470 per ten grams, on increased buying by jewellers and retailers to accommodate the demand for the festival and marriage season beginning next month.

The precious metals, silver and gold, normally witness a pick up in demand in the last quarter starting with Rakshabandhan till Dhanteras, which Hindus consider auspicious for buying gold.

The sentiment was further bolstered after gold traded near its record overseas, as a drop in equities increased the precious metal's appeal as an alternate investment.

The investors bought gold to seek protection against the financial turmoil in Europe and the prospect of slowing economic growth. The gold in London rose to an all-time high of 1,265.30 dollar an ounce on June 21.

The gold in overseas markets, which normally set a price trend for the domestic markets here, gained 0.3 per cent to $1,259.45 an ounce. Silver gained 0.6 per cent to trade above $20 an ounce, the highest since March 2008.

In domestic markets, gold of 99.5 and 99.5 per cent purity jumped up by Rs 145 each to Rs 19,470 and Rs 19,370 per 10 gm, respectively. Sovereign rose by Rs 100 to an all-time high of Rs 15,100 per piece of 8 gm.

Silver ready surged by Rs 200 to year's highest level of Rs 31,775 a kg and weekly-based delivery by Rs 110 to Rs 31,520 a kg.

Silver coins followed suit and gained Rs 100 to Rs 35,200 for buying and Rs 35,300 for selling of 100 pieces.