Gold prices on Friday zoomed past all previous records to set a new peak at Rs 14,170 per 10 gram in the bullion market here on aggressive buying by stockists sparked by a firming overseas trend.
Trading sentiment turned extremely bullish after the gold in overseas markets surged to a three-month high as holdings in the world's biggest exchange-traded fund backed by bullion expanded to a record, signalling increased demand for the metal as a haven.
The gold trading volume on London's SPDR Gold Trust expanded by 1.3 per cent to a record 843.59 metric tons. The precious metal heading for a 4.6 per cent gain in January, its third monthly increase, after adding 18.13 dollar to 926.78 dollar an ounce.
The global trend which set prices in domestic markets here, pushed up standard gold and ornaments by Rs 320 each at an all-time high level of Rs 14,170 and Rs 14,020 per ten gram respectively. Sovereign rose by Rs 50 at Rs 11,050 per ten gram in brisk trading.
Silver joined the rally surging by Rs 300 at Rs 19,400 per kg and weekly-based delivery by Rs 420 at Rs 19,600 per kg. Silver coins surged by Rs 300 to Rs 27,800 for buying and Rs 19,600 for selling of 100 pieces.
A similar firmness was noticed in futures trading as gold shot up by 2.13 per cent to Rs 14,448 per ten gram on the Multi Commodity Exchange, a level never seen before. Silver for July month delivery rose by 4 per cent to Rs 20,310 per kg on the MCX.
In the international market, gold rallied more than 2 per cent on Friday, reversing earlier losses, as investors bought the precious metal as a haven from risk amid volatility in other assets.
Spot gold rose to a peak of $926.05 an ounce, and was quoted at $919.25 an ounce at 0854 GMT, up from $906.75 late in New York on Thursday.
Futures market
Gold prices continued to slide for the second straight session by falling 1.39 per cent in futures trading on Friday on sustained selling by traders influenced by a weakening global trend.
Market sentiment remained bearish as gold fell in London as a stronger dollar and US measures to ease the financial crisis eroded demand for the metal as an alternative investment. Gold for most-active August-month contract fell by 1.39 per cent at Rs 13,880 per 10 gm on the Multi Commodity Exchange. The contract recorded a business volume of 4 lots.
Similarly, June-month contract fell by 0.52 per cent at Rs 13,833 per ten gram with trading volume of 83 lots.
The fall in gold prices in futures market mostly attributed on sustained selling by traders in tandem with weakening global trend.
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