The yellow metal, which has been surging in recent weeks as nations battled currency appreciation, hit a historic high of Rs 20,000 per 10 grams in the futures market.
Gold for June-delivery surged on Monday to a record Rs 20,007 per 10 grams at the Multi Commodity Exchange (MCX).
The spot price for gold closed at Rs 19,510 per 10 grams (Ahmedabad) on Monday at the National Commodity and Derivative Exchange (NCDEX).
Traders however do not see much real demand as the speculative high prices are keeping real buyers away.
“Prices are not rising because of retail demand. There is no real demand for gold in the market since the prices are very high even though the festival season is approaching,” said the head of a bullion trading association in Mumbai, who did not want to be named.
Experts feel that the price spurt is the result of large investment money flowing into gold.
“When there is global money (looking for an outlet), and countries do not want their currency to appreciate, the money has to go somewhere — and it is going to hard commodities like gold,” said Ritesh Jain, head of fixed income at Canara Robeco Mutual Fund.
If the trend continues, it is possible that gold may well touch, even cross, the R20,000-per-10-gram mark in the spot markets in the country.
On similar lines, silver prices jumped to a record high of R35,600 per kg on heavy buying by stockists and industrial units to meet the festival-season demand, amid a firming trend in the Asian region.