Gold climbs to new high of Rs23,175/10 gram, silver slips

Gold prices surged to a new peak and crossed the Rs23,000 mark in the national capital today on sustained buying by speculators, triggered by a strong rally in overseas markets. Silver, however, dropped due to reduced offtake.

The yellow gold spurted by Rs655 to all-time high of Rs23,175 per 10 grams as the metal in international markets climbed to a record high of $1,570.60 an ounce in day-to-day trading.

Hectic buying by stockists and retail customers ahead of 'Akshya Tritya' festival, a traditional day for buying gold further bolstered the market sentiment.

Silver, however, lacked necessary follow-up support on reduced offtake at existing higher levels and shed Rs500 to Rs71,500 per kg.

Market analysts said the recent surge in gold prices in the domestic markets, driven by a firming global trend on bets that the dollar will extend a slump, boosted the demand of the metal as a store of value.

They added that the upsurge was speculative in nature and scattered small buying for the coming festival and marriage season supported the market trend.

On the domestic front, gold of 99.9 and 99.5% purity rose by Rs655 each to a record high of Rs23,175 and Rs23,055 per 10 grams, respectively.

Sovereign followed suit and rose by Rs100 to a fresh high of Rs18,500 per piece of eight gram.

On the other hand, the white metal attracted profit-taking by dealers at existing higher levels and recorded a moderate loss of Rs500 to Rs71,500 per kg, while weekly-based delivery fell by Rs570 to Rs70,600 per kg.

Similarly, silver coins lost Rs500 to Rs77,000 for buying and Rs78,000 for selling of 100 pieces.