Reaches Rs 19,050 per 10 gm amid ongoing marriage season and high global prices.
Gold prices zoomed to an all-time high of Rs 19,050 per 10 gm in the national capital today on skyrocketing global rates amid the ongoing marriage season in India.
In international markets, gold prices surged for the seventh straight day as the European debt crisis increased demand for the precious metal as a safe haven.
Bullion in the Asian region gained as much as 0.5 per cent to $1,222.47 an ounce, its highest level since May 19, as the euro extended its 2.4 per cent decline against the dollar last week.
“The steep rise in gold prices comes at a time when the Indian markets are passing through a bullish mood on hectic buying by jewellers and retailers for the ongoing marriage season,” said All-India Sarafa (Bullion) Bazaar Association President Sheel Chand Jain.
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“The only trigger for domestic gold prices touching a new high is rupee depreciation,” said Kochi-based commodity brokerage firm JRG Wealth Vice-President and Research Head Harish G.
The rupee depreciated by 21 paise to 46.57 a dollar in early trade at the Interbank Foreign Exchange today on capital outflows by foreign funds and the dollar’s gain overseas.
“The global international market is strong, but prices are not rallying at very high level,” he added. “At present, gold prices in the global market are ruling $1,220 an ounce, below the last high of $1,249.4 an ounce,” he said. The precious metal’s rise in future trading was another supporting factor boosting the sentiment in the physical market. Gold has gained 8.3 per cent over the past two months in global markets and reached a record $1,249.40 an ounce on May 14 on concerns that European measures to cut deficits and contain sovereign debt risks will curb growth in the region and weaken the euro.
Pure gold (99.9) spurted by Rs 325 to Rs 19,050 per 10 gm and metal with 99.5 purity traded higher by the same margin at Rs 18,900 per 10 gm. Sovereigns also rose by Rs 50 to Rs 14,650 per piece of 8 gm on emergence of buying by retail customers for the ongoing marriage season.
In Mumbai, standard gold shot up by Rs 345 per ten grams to finish at a new peak of Rs 18,750 from yesterday's closing level of Rs 18,405. Pure gold zoomed by Rs 350 per 10 gm to a historic high of Rs 18,840 as against previous closing of Rs 18,490. Silver ready shot up by Rs 200 to Rs 29,800 a kg and weekly-based delivery by Rs 280 to Rs 29,440 a kg on emergence of buying by industrial units and jewellery makers.
