Gold prices on Saturday jumped Rs 430 to an all-time high of Rs 19,070 per ten grams in the bullion market here as investors rushed for the metal, considered as a safe bet, after global equity markets crashed on concerns over worsening eurozone debt crisis.
Trading sentiment turned extremely bullish after gold in overseas markets rebounded from a one-week low as investors opted to buy less risky assets against melting stocks and forex markets.
The euro dropped below $ 1.20 for the first time since March 2006 on mounting concerns that Europe’s sovereign-debt crisis would spread to global markets.
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Panic sparked after a spokesperson for Hungarian Prime Minister said his nation’s economy is in a “very grave situation.” The U.S. and European equities and commodities retreated the most in a week.
Fearing the worsening euro zone debt crisis might slowdown global economy, investors rushed to buy gold as an alternate place to park their funds, marketmen said.
Gold in global markets, which normally sets price trend on the domestic front, jumped up by 12.20 dollar to 1,220.00 dollar an ounce.
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The ripples were felt in domestic market here as pure gold (99.9) surged by Rs 430 to set a new peak of Rs 19,070 per ten gram. Gold with 99.5 purity shot up by Rs 420 to Rs 18,970 per ten gram.
Sovereign followed suit and traded higher by Rs 50 to Rs 14,650 per piece of eight gram.
However, silver ready lacked necessary buying support and shed Rs 75 to Rs 28,825 per kg and weekly-based delivery by Rs 170 to Rs 28,425 per kg. However, silver coins remained unchanged at Rs 34,400 for buying and Rs 34,500 for selling of 100 pieces.