Gold prices surged in futures trade to hit a new record high of Rs 27,725 per 10 grams on Friday after the precious metal climbed to a fresh peak in global markets as escalating concerns about the debt crisis and economic growth spurred demand.
The rise of gold to an all-time high of over $1,840 an ounce in the Asian region came as equity markets tumbled worldwide, encouraged investors to divert their funds to bullion, which looks attractive, traders said.
At the Multi Commodity Exchange, gold for delivery in December shot up by Rs 302, or 1.13 per cent, to hit an all-time high of Rs 27,725 per ten grams, with a business volume of 57 lots.
Similarly, gold for October delivery spurted by Rs 326, or 1.13 per cent, to Rs 27,500 per 10 grams, a level never seen before. The contract clocked a business volume of 681 lots.
“Diversion of funds toward gold following weakening equity markets worldwide and upcoming marriage season demand in the domestic markets lifted gold prices to a new high at the futures market,” said market expert Shree Bhagawan, adding that the “upswing in its prices is expected to be maintained for coming days”.
Market experts said the sentiment was buoyed after gold climbed above $ 1,840 an ounce in global markets for the first time as a worsening economic outlook for the US and concerns about the health of Europe’s banks raised demand for the precious metal as a safe investment haven.
Gold in the Asian region shot up by $ 16.90 to $ 1,841.80 an ounce on Friday, an all-time high.