Riding high on seasonal demand, gold prices on Wednesday moved up by Rs 175 to a new peak level of Rs 29,440 per 10 grams in the bullion market here.

Gold had touched a high of Rs 29,295 on November 14.

Silver also recovered by Rs 400 to Rs 57,900 per kg on buying by stockists and industrial units for the ongoing marriage season.

Traders said, besides seasonal demand, a firming trend in the overseas market, where gold and silver rose as investors bought the precious metals for protection against signs of widening European debt crisis.

In New York, gold traded higher by 0.04 per cent to $1,781.10 an ounce, while silver advanced by 0.96 per cent to $34.57 an ounce.

Shifting of funds by investors from melting equity to rising bullion also bolstered the sentiment, traders said.

Gold of 99.9 and 99.5 per cent purity climbed Rs 175 each to Rs 29,440 and Rs 29,300 per 10 grams.

Sovereigns remained steady at Rs 23,300 per piece of eight grams.

Similarly, silver ready gained Rs 400 to Rs 57,900 per kg and weekly-based delivery added Rs 435 to Rs 57,735 per kg.

Silver coins continued to be asked at previous levels of Rs 65,000 for buying and Rs 66,000 for selling of 100 pieces.

Keywords: bullion market

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