Gold sets new record of Rs 30,400/10 gms on strong global cues
New Delhi: Gold on Wednesday broke all previous records to touch the Rs 30,400-mark per 10 gms in tune with global prices that touched a four-week high amid a weak dollar on anticipation of a fresh stimulus for Eurozone.
In spot markets, prices of the precious metal rose by Rs 200 to Rs 30,400 per ten grams in Delhi. Traders said the price was supported by a pick-up in demand from stockists as well as jewellers for the upcoming wedding season.
Tracking the buoyancy in the spot market, the price of gold in futures trading at the Multi Commodity Exchange also rose. Gold for delivery in October spurted Rs 283, or 0.71 percent, to trade at an all-time high of Rs 30,625 per ten gram, in a turnover of 647 lots.
Meanwhile, the BSE Sensex today zoomed nearly 434 points on across-the-board selling while the rupee appreciated 28 paise to close at a one-week high of 55.36 against the dollar on foreign fund flows.
Gold in other major metros like Kolkata jumped by Rs 115 to trade at new high of Rs 30,415 while the safe-haven asset, also considered auspicious in the country, rose by Rs 195 to Rs 30,485 in Chennai market. In Mumbai, gold ended Rs 115 higher at Rs 30,075 per ten grams.
"Firming trend in overseas on weakening dollar and rising domestic demand for the coming wedding season lifted gold prices to new highs on the domestic markets here", said Delhi-based jeweller Rakesh Anand.
In international markets, which generally determine prices here, gold rallied by 1.3 percent to USD 1,637,40 per troy ounce in London, the highest since May 8.
Gold and dollar move in opposite directions. This means a weaker US dollar tends to keep the price of gold higher.
The dollar today lost against euro with global investors cutting bearish positions on expectations that European Central Bank may initiate a fresh round of measures to bolster the debt-ridden single currency area's economy.
Experts also pointed out that sentiment helped domestic gold prices as global prices rose to a four-week high in London as a weaker dollar increased the metal's appeal as an alternative asset.