Gold’s appeal as a safe haven increased on Friday amid a worldwide crash in other investment options including equities and dollar, as investors rushed to buy the yellow metal.
Gold prices rose Rs 70 to Rs 24,350 per 10 grams in New Delhi, hitting a new record.
Global cues are driving the prices of the yellow metal, as investors seem to be hedging by buying gold, analysts said. While in the domestic market, gold prices are expected to yeild healthy returns. the upcoming Hindu festive season is also likely to fuel demand, according to experts.
Silver, on the other hand, bore the brunt of the global commodity sell-off and witnessed a massive speculative unwinding.
“The yellow metal turned into a safe investment bet due to ongoing concerns over other high-return assets as they are getting riskier day by day over turmoil in global markets,” traders said.
Standard gold (99.5 purity) shot up by Rs 145 per 10 grams to end at Rs 24,170 from Thursday’s close of Rs 24,025. Pure gold (99.9 purity) also spurted by Rs 135 per 10 grams to conclude at Rs 24,280.
However, silver ready (.999 fineness) tanked by a hefty Rs 2,240 per kg to Rs 59,400.