Gold touches record high Rs 30,625 in futures

Strong global trend, weak dollar pushed prices higher

Gold prices rose by Rs 283 to hit an all-time high of Rs 30,625 per 10 grams in futures trade today after speculators created huge positions, driven by a firming trend overseas as a weaker dollar raised the metal's appeal as an alternative asset.

A firm trend on the spot markets on buying by stockists and jewellers' to meet the upcoming wedding season demand also supported the upside in gold futures here.

At the MCX, gold for delivery in far-month October rallied by Rs 283, or 0.71%, to trade at an all-time high of Rs 30,625 per 10 grams, with a turnover of 647 lots.

The metal for delivery in August traded higher by Rs 284, or 0.68% higher, at Rs 30,295, with a business volume of 21,492 lots.

Market analysts said sentiment at futures market bolstered as gold rose to a four-week high in London as a weaker dollar increased the metal's appeal as an alternative asset.

Besides, covering-up of short positions by speculators on fears of further rise in the precious metal also influenced the prices, they said.

Meanwhile, the dollar declined against the euro amid speculation that the world's leading economies will collaborate on a response to Europe's debt crisis.

In London, gold rose by 1.3% to $1,637.40 an ounce in London, the highest since May 8.

In the spot markets, gold climbed Rs 200 to trade at a new high of Rs 30,400 per 10 grams here.