Gold hits record high of Rs 29,590 on seasonal demand

The precious metal, which has gained Rs 650 in the last eight trading sessions, advanced further by Rs 50 to Rs 29,590 per 10 grams, a level never seen before after consumption of the precious metal rose for the ongoing marriage season.

The trading sentiment further bolstered as the mental in overseas markets climb for a fifth day for the best run since January as concern of deepening euro-zone debt crisis boosted demand for alternate investment.

In London, gold gained 0.1 per cent to USD 1,665.23 an ounce.

As the metal was in firm mode all-over, the gold in futures trade climbed 0.21 per cent to Rs 30,247 per 10 grams for December delivery on the Multi Commodity Exchange.

"The gold getting support from all the front like haven demand in overseas markets and a socio-economic value on the domestic front," All India Sarafa Association General Secretary Surender Jain said.

He said the buying activity among retailers picked up in global markets rising as a safe bet at the time of Europe's deepening sovereign debt crisis.

The dollar priced gold also surged to record high levels as falling rupee put upward pressure on the prices and speculators enlarged their positions, Jain said.

On the domestic front, the gold of 99.9 and 99.5 per cent purity rose by Rs 50 each to Rs 29,590 and Rs 29,450 per 10 grams, respectively. Sovereigns held unchanged at Rs 23,650 per piece of eight grams in limited deals.

Silver ready shot up by Rs 400 to Rs 56,900 per kg on rising demand from jewellery and coins makers. Silver weekly- based delivery rose by Rs 90 to Rs 55,965 per kg.

Silver coins continued to be asked at previous level of Rs 65,000 for buying and Rs 66,000 for selling of 100 pieces. PTI RS SUN KPS RAH