Gold price above Rs 10,000/10gm

Gold price hit a high of Rs 10,300 per 10 gram in Mumbai's Zhaveri Bazar on firm guidance from the international markets.

"Gold is following crude oil prices, and is likely to revert only after hitting the benchmark of $820/oz in the overseas markets," said Bhargav Vaidya of B N Vaidya & Associates.

Domestic scrap gold sales has spurted 30% in the last six months for replacement with virgin jewellery and selling on rising prices.
 
The lacklustre festival demand has lead domestic jewellers, especially in Chennai, the largest gold consuming city, to replace virgin gold jewellery with scrap without any loss in weight and making charges. During the last fiscal year, scrap sales were estiamted to be between 300-330 tonne.

Meanwhile, gold rose to a 27-year high in London in early Friday trades as the dollar slumped to a record low against the euro and oil traded at an all-time high boosting bullion's appeal as a hedge. The yellow metal for immediate delivery rose $9.20, or 1.2%, to $778.50 an ounce - the highest since January 1980.