Sep 08, 2012, 06.42 PM IST

Gold hits new high of Rs 32,450 on firm global cues

Tracking strong global cues, gold today soared by Rs 540 per ten grams to fresh all-time high of Rs 32,450 in the national capital.

Source: PTI

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Tracking strong global cues, gold today soared by Rs 540 per ten grams to fresh all-time high of Rs 32,450 in the national capital. Prices of gold (99.5 purity) in Kolkata increased by Rs 620 to Rs 32,425, while rates in Chennai rose by Rs 710 to Rs 32,325 per ten grams. In Mumbai, the precious metal's rates surged by Rs 605 to Rs 31,955 today.

"The domestic gold prices are rising purely due to globaldevelopment. After the announcement of potentially unlimited bond-buying by the European Central Bank (ECB) and unfavourable non-farm pay roll data of the US, international
gold prices shot up," SMC Comtrade CMD D K Aggarwal said. Global prices rallied as poor non-farm employment data indicated serious job problems in the US and its weak economic situation, traders said.

The US data also brightened chances of announcement of stimulus package by the US Federal Reserve in its forthcoming meeting, Aggarwal said, adding that these developments are driving prices of gold and silver. Gold prices in New York shot up by USD 34 to USD 1,735.30 an ounce, its biggest single-day gain since February 29. Aggarwal said there is not much of physical demand of gold in the country.

However, jewellery demand is expected to pick in the wedding and festive season. Echoing similar views, All India Sarafa Association General Secretary Surender Jain said: "Local gold price, which moves in tandem with global rate, is expected to see more peak levels in coming days." In the domestic market, silver prices also rose by Rs 2,100 to Rs 61,800 per kg on increased offtake by industrial units and coin makers.