Gold prices rise to all-time high of Rs 16,000

Gold sets new peak at Rs 16k despite beginning of Shradhh
5 Sep 2009, 1712 hrs IST, PTI
NEW DELHI: Jewellers today continued buying gold despite the onset of 'Shradhh' pushing up prices to the landmark Rs 16,000 level per 10 gram in the national capital, amid positive trends in the global market where the precious metal is reigning at a six-month high.
Standard gold surged by Rs 100 at Rs 16,000 per 10 gram in the domestic market where stockists and jewellers built up their stocks despite the commencement of 'Shradhh', a fortnight considered inauspicious for making valuable buys.

Similarly, silver coins too touched a peak at Rs 31,400 per 100 pieces, up by Rs 200, backed by a steep rise in silver prices. Silver rose by Rs 250 to Rs 25,550 per kg.

Marketmen said, prices shot up despite retail customers keeping away from the market, while stockists were keen buyers preparing to meet demand for the festival and marriage season, which starts on September 18, after the end of Shradhh.

They added that the sentiment was further bolstered by firm trend in the global market where gold is trading around a six month-high of USD 1,000 an ounce.

Traders said stockist were unconcerned about Shradhh as plenty of jewellery orders were booked in advance for the coming seasons and on fears that prices may rise further.

"Customers feared the firm overseas trend and beginning of festival season may give another big push to the precious metals," All India Sarafa (Bullion) Bazar President Sheel Chand Jain said.

Another leading bullion merchant Ravi Jalan said the steep rise in gold prices in global markets was a major factor behind the current rally.
He said the market also witnessing some investor fund shifting from the uncertain equity to bullion markets.

Standard gold and ornaments surged by Rs 100 each at Rs 16,000 and Rs 15,850 per ten gram respectively. The sovereign held unchanged at Rs 12,800 per eight gram piece.

Silver ready shot up by Rs 250 to Rs 25,550 per kg and weekly-based delivery by Rs 450 to Rs 26,150 per kg.