Gold continues to set new records, climbs to Rs. 18,810

Customers at a gold jewellery store. File photo

Gold continued with its record setting spree, climbing to a new peak of Rs. 18,810 per ten grams in the national capital today on frantic buying for the ongoing marriage season amid a firming global trend.

Buying activity gathered momentum as speculators indulged in squaring up their pending positions in futures trading ahead of settlement at this month’s end.

A firming trend in overseas markets continued to support the precious metal in domestic markets here. The price of gold in global markets, which sets the trend in domestic markets, climbed for a third day as investors sought a haven from Europe’s debt crisis.

Standard gold and ornaments shot up by Rs. 150 to Rs. 18,810 and Rs. 18,660 per ten grams respectively. Sovereign prices also firmed up by Rs. 75 to Rs. 14,600 per piece of eight grams.

Prices of the precious metal surpassed the previous peak of Rs. 18,550 - which was attained on December 3 last year - during yesterday’s trading session to set a new record on brisk buying by jewellers and stockists for the current marriage season, joined by investors and speculators.

Market experts said the upsurge in gold is purely of speculative nature and has little to do with physical buying for the marriage season.

“The gold is running high as traders who had created short positions in anticipation of a fall in coming days were trapped and indulged in clearing their positions even at every rise,” said Sheel Chand Jain, the President of the All-India Sarafa (Bullion) Bazaar.

He said the firming international trend and marriage season were partly responsible for the upsurge.

“Gold is again benefiting from safe-haven flows as uncertainty and risk aversion across markets persist,” said Delhi-based jeweller Rakesh Anand, adding that the metal might become more dear all over the world, as the Europe debt crisis is yet to run its course.

A firming trend was also seen in silver as prices rose 0.5 per cent to $ 18.04 an ounce in the Asian region. The ripples were felt in domestic market here as silver ready prices surged by Rs. 600 to Rs. 29,550 per kg and weekly delivery by Rs. 565 to Rs. 29,200 per kg.

Silver coins rose by Rs. 100 to Rs. 34,500 for buying and Rs. 34,600 for selling of 100 pieces on retail buying for the marriage season.