Continuing its upward swing, gold, on Wednesday, surged to a new all-time high of Rs.31,980 per 10 gram here on sustained buying by stockists amid a firming global trend.

The precious metal, which has been setting new records for the last two weeks, spurted by Rs.130 to Rs.31,980 per 10 gram on brisk buying by stockists for the upcoming marriage season and some investors shifting their funds to bullion from melting equity markets.

Gold prices in the domestic market were also supported by a firming global trend as traders await outcome of European Central Bank meeting to counter deepening eurozone debt crisis, raising demand for the metal as a safe haven.

In New York on Tuesday, gold rose by $3.60 to $1,696.20 an ounce.

Silver slides

Back home, silver met with resistance at prevailing higher levels and lost Rs.200 to Rs.60,000 a kg. in New Delhi.

Gold of 99.9 and 99.5 per cent purity advanced by Rs.130 each to set a new peak of Rs.31,980 and Rs.31,780 per 10 gram, respectively. The metal had gained Rs.240 on Tuesday. Sovereigns followed suit, and moved up by Rs.100 to Rs.25,050 per piece of eight gram.

Silver ready lacked necessary follow-up support and lost Rs.200 to Rs.60,000 a kg while weekly-based delivery added Rs.170 to Rs.61,950 a kg. Silver coins spurted by Rs.1,000 to Rs.76,000 for buying and Rs.77,000 for selling of 100 pieces.

Keywords: Gold prices

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