Buoyed by a strong rally abroad, gold prices rose to a record high of Rs 31,300 per 10 grammes in the bullion market here on Saturday. Gold prices rose by Rs 185, registering gains for the sixth consecutive day. Standard gold prices in Mumbai rose to a new high of Rs 30,870.
Silver prices increased by Rs 950 to Rs 57,800 per kg on increased buying. Prices of silver coins also rose by Rs 2,000 to Rs 73,000 for buying and Rs 74,000 for selling per 100 pieces.
Traders said the gold rally in global markets influenced trading sentiment. In global markets, gold saw the biggest weekly gain since January, amid speculation the Federal Reserve would take more steps to spur the economy, boosting the metal's demand as an instrument to hedge against inflation. In New York, gold prices rose by $2.10 to $1,674.90 an ounce, posting its biggest weekly gain since January 27. Silver prices rose 0.5 per cent to $30.70 an ounce.
Buying by investors, as well retail customers, also supported the uptrend in precious metal prices, traders said. On the domestic front, gold with purity of 99.9 and 99.5 per cent rose by Rs 185 to touch record levels of Rs 31,300 and Rs 31,100 per 10 grammes, respectively. Prices of the metal increased Rs 675 in the last five sessions. Sovereign held steady at Rs 24,700 per eight-gramme piece.
