Gold climbs to new high of Rs 23,175/10 gram, silver slips

NEW DELHI: Gold prices surged to a new peak and crossed the Rs 23,000 mark in the national capital on Saturday on sustained buying by speculators, triggered by a strong rally in overseas markets. Silver, however, dropped due to reduced offtake.

The yellow gold spurted by Rs 655 to all-time high of Rs 23,175 per 10 grams as the metal in international markets climbed to a record high of USD 1,570.60 an ounce in day-to-day trading.

Hectic buying by stockists and retail customers ahead of 'Akshya Tritya' festival, a traditional day for buying gold further bolstered the market sentiment.

Silver, however, lacked necessary follow-up support on reduced offtake at existing higher levels and shed Rs 500 to Rs 71,500 per kg.

Market analysts said the recent surge in gold prices in the domestic markets, driven by a firming global trend on bets that the dollar will extend a slump, boosted the demand of the metal as a store of value.

They added that the upsurge was speculative in nature and scattered small buying for the coming festival and marriage season supported the market trend.

On the domestic front, gold of 99.9 and 99.5 per cent purity rose by Rs 655 each to a record high of Rs 23,175 and Rs 23,055 per 10 grams, respectively.

Sovereign followed suit and rose by Rs 100 to a fresh high of Rs 18,500 per piece of eight gram.

On the other hand, the white metal attracted profit-taking by dealers at existing higher levels and recorded a moderate loss of Rs 500 to Rs 71,500 per kg, while weekly-based delivery fell by Rs 570 to Rs 70,600 per kg.

Similarly, silver coins lost Rs 500 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces
DEEPAK KUMAR JHA
PGDM 2ND SEM (2010-12)