Gold prices on Tuesday set a new peak at Rs 16,470 per 10 gram in the bullion market on frantic buying by stockists and jewellers for the ongoing marriage season amid a firming global trend.
Standard gold and ornaments shot up by Rs 280 each to Rs 16,470 and Rs 16,320 per 10 gram, respectively. Sovereign also gained Rs 35 to touch a fresh peak of Rs 13,060 per piece of eight gram.
Marketmen said increased buying by retailers for the ongoing marriage season led to the rise in gold prices. Besides, reports that the yellow metal in the overseas markets spurted to USD 1,064 last evening as weakening dollar raised the demand for the yellow metal as an alternate investment bolstered trading sentiment.
Buying in precious metal also picked up as some of the funds were seen shifting from melting equities to the bullion, considering it a safe bet, they said.
The Bombay Stock Exchange benchmark Sensex today closed sharply lower by 491.34 points to close at 15,404.94, a level last seen on September 3.
Silver rose by Rs 200 to Rs 26,550 per kg on emergence of buying by coins manufacturers and industrial units.
Silver ready went up by Rs 200 to Rs 26,550 per kg and weekly-based delivery by Rs 250 to Rs 26,200 per kg. However, silver coins remained at around previous levels of Rs 32,900 for buying and Rs 33,000 for selling of 100 pieces.