Gold prices on Thursday jumped by Rs 170 to close at all-time record of over Rs 18,000-per ten gram in the bullion market here on strong marriage season demand, positive global cues and a weaker dollar.
Resuming its upward trend for the second day in a row, which saw the metal touching Rs 18,000 on Wednesday, both standard gold and ornaments shot up Rs 170 each to close at Rs 18,170 and Rs 18,020 respectively.
Sovereign followed suit and rose by Rs 200 to set a fresh peak of Rs 14,000 per piece of eight gram.
Marketmen said the metal rose on hectic buying by stocksists and fabricators in view of the ongoing marriage season. Gold crossing 1,195 dollar in London, after Sri Lanka's central bank purchased bullion also added to gold's gain, they said.
Sri Lanka bought 10 metric tonnes from the International Monetary Fund following India, Russia and Mauritius in the rush for gold.
The metal, which typically moves inversely to the dollar, also received help after the US currency fell to a 14-year low against against the yen. Marketmen said the metal might see more peaks this week and could be a better option for investors.
"Gold which normally moves in tandem with international prices, may see $1,250 an ounce very soon," said Sheel Chand Jain, president of All India Sarafa (Bullion) Bazar Association.
He said rising prices have dried up demand among retailers and pulled down business volumes to negligible levels.
"Gold prices are moving in line with the international trend and are more co-related to the US currency these days," he said, adding that a rise in futures trading and melting equities further boosted prices.
However, silver ready lacked necessary buying support at existing higher level and fell by Rs 50 to Rs 28,950 per kg and weekly-based delivery by Rs 30 to Rs 28,550 per kg. Silver coins remained steady at Rs 34,400 for buying and Rs 34,500 for selling of 100 pieces.
